Written Answers Nos. 18-25
18. Deputy Mattie McGrath asked the Minister for Public Expenditure and Reform the measures that have been taken to enact and implement the Valuations Bill in order to accelerate the revaluation of properties for commercial rates purposes; and if he will make a statement on the matter. [53730/13]
View answer28. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform when he intends to introduce in Dáil Éireann the urgently-needed legislation to deal with changes in the valuation system for commercial rates; and if he will make a statement on the matter. [2692/14]
View answerI propose to take Questions Nos. 18 and 28 together.
The Government published the Valuation (Amendment) (No. 2) Bill, 2012 on 3rd August, 2012 as part of its legislative programme. The Bill proceeded through its second stage in Seanad Éireann on 11th October 2012.
At the outset, let me say that the Bill will not change the basis of valuation for rating purposes. This will continue to be "net annual value" which is the hypothetical rental value of a property as assessed by reference to a specified date. This is a long standing principle of the rateable valuation system in Ireland and ensures equity and fairness in relation to the values of commercial and industrial properties across a local authority area.
The primary purpose of the Bill is to accelerate the national programme of revaluing every commercial and industrial property in the country which is being undertaken by the Valuation Office. The Bill amends several provisions contained in the Valuation Act 2001. These amendments include a number of technical changes to Part 5 of the 2001 Act which deals with how valuations, including revaluation of entire rating authority areas, are carried out. The Bill also proposes to amend Part 6, which deals with the carrying out of revisions of the rateable valuation of individual properties within rating authority areas between revaluations. In both instances, it is envisaged that the Commissioner of Valuation will appoint officers to carry out the tasks in question and the Bill makes specific provision for the appointment of "revision managers". Section 6 of the Bill proposes to amend Section 19 of the Valuation Act 2001 by enabling the Commissioner to appoint persons to carry out the revaluation of entire rating authority areas. Such persons may be an officer of the Commissioner. However, provision is also made for the Commissioner to enter into an arrangement with a person or persons (other than officers of the Commissioner) to assist in the performance of the revaluation function. The effect of this provision is to enable the Commissioner to contract out some of the revaluation work, in order to augment the in-house capacity of the Valuation Office. This is one of the express provisions intended to assist the acceleration of the national revaluation programme. I understand that, following enactment of the Bill, the Commissioner intends running a pilot revaluation project which will utilise such external resources.
Following enactment of the Bill, it is envisaged that revaluation projects can be conducted through the normal direct assessment methodology. However, the Bill (Section 11, inserting a new Part 5A into the 2001 Act) also provides for the Commissioner to conduct a revaluation using elements of self-assessment by ratepayers. This provision is also intended to assist the acceleration of the national revaluation programme and I understand that, following enactment of the Bill, the Commissioner intends running a pilot project which will utilise self-assessment principles. I also wish to draw the attention of the Deputies to Section 22 of the Bill which proposes to amend Section 48 of the 2001 Act by providing for the use of general market data or aggregated data (including statistical and computer-aided techniques) in determining valuations, where the Commissioner considers it appropriate to do so.
Since the 2nd stage debate was taken in Seanad Éireann, officials in my Department and the Valuation Office have engaged in an extensive consultation process on various aspects of the Bill with a range of stakeholders. While the legislation is quite complex, the amendments to be proposed at Committee Stage in the Seanad are at an advanced stage of drafting. Every effort is being made to expedite the passage of the Bill and I expect to see it progressing through the Oireachtas before the Summer recess.
19. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform the steps being taken to address flood risks within the Shannon basin; and if he will make a statement on the matter. [2577/14]
View answerThe core strategy for addressing flood risk in the Shannon Basin is the River Shannon Catchment Flood Risk Assessment & Management Study. The CFRAM Study is being conducted by Jacobs Engineering on behalf of the OPW and I am advised that good progress is being made on the project. A total of 66 areas along the Shannon, have been designated as Areas for Further Assessment under the Study. The output of this important project will be an integrated plan of specific measures to address, in a comprehensive and sustainable way, the significant flood risk factors in the Shannon basin, including the Callows area.
As the Deputy is aware, operational control of water flows and levels on the Shannon is the responsibility of both the ESB and Waterways Ireland. In order to address ongoing concerns that the existing water level control regime may be a contributory factor in early Summer flooding in the Callows, the OPW facilitated discussions between these principal operating stakeholders toward agreeing a new interim control regime on the regulation of levels. Under this interim regime the ESB agreed to a trial lowering of the Spring/early Summer target levels in Lough Ree to reduce somewhat the risk of summer flooding, particularly in the Shannon Callows area. This trial commenced in Summer 2013 and will remain in place until the publication of the Shannon CFRAM Plan.
On foot of discussions between my office and the IFA, and with the cooperation of both the ESB and Waterways Ireland, a water level monitoring exercise is being carried out as part of the CFRAM process which will allow for analysis of water flows and levels at key points around the Lough Ree and Callows areas. Data from this exercise has been collated and the results have been forwarded to the CFRAM consultants. This data will feed into the overall Shannon CFRAM study and the interim data will be published on the website, www.shannoncframstudy.ie. The OPW will continue to review these developments on a regular basis in consultation with the ESB and Waterways Ireland.
20. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform his estimate of the State’s actuarial liability in respect of future public service pension obligations; his views on whether adequate planning and provision is being made for the future payment of public service pension; his plans regarding same; and if he will make a statement on the matter. [2675/14]
View answerThe most recent actuarial exercise conducted by the Comptroller and Auditor General showed the accrued liability in respect of public service occupational pensions to have been an estimated €116 billion as of December 2009. Work is under way in my Department on updating this figure; this exercise will estimate the position as of December 2012, and will take into account the relevant changes in public service pay and pensions over recent years. It is expected that the updated estimate of the accrued liability will be available early this year. The updated liability figure arising from this exercise will be an important consideration in the ongoing development of public service pension policy. Notwithstanding that the revised total liability figure is awaited, I am satisfied that adequate planning and provision is being made for the future payment of public service pensions, though this is naturally a matter which is kept under close review. My view is based on a series of cost containment measures put in place over recent years affecting existing pensioners, serving staff and new recruits.
The most significant cost-saving reform has been the introduction in January 2013 of the Single Public Service Pension Scheme , also known as the Single Scheme, which is the default pension scheme for new-hire workers across the entire public service. This landmark reform targets very substantial long-run savings of about one third of pension outgoing, with those savings deriving mainly from career-average (not final-salary) pension accrual, inflation (not pay) linkage of benefits, and higher minimum pension age (effectively 68 years for most new joiners).
Several other measures have also been taken over recent years which help to curb public service pension costs as follows:
- In 2004 minimum pension age for new-joiner public service workers was raised from 60 to 65 years.
- In 2010 public service pay cuts averaging approximately 7% were applied. Further pay cuts affecting public servants with annual earnings above €65,000 were applied in July 2013. These various pay reductions act to reduce individual pension and lump sum awards to persons retiring from the public service.
- In 2011 public service pensions in payment above €12,000 were reduced via a multi-band progressively structured Public Service Pension Reduction (PSPR), which had an average impact of 4% on pensions.
- In July 2013, further cuts in public service pension payment rates, via adjustments to the rates and scope of the PSPR, and amounting to between 2% and 5%, were imposed on pensions in excess of €32,500. This adjustment brings the full-year saving from PSPR to a projected €125 million.
21. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the number of new agencies and State bodies established since 9 March 2011 under the remit of his Department; and if he will make a statement on the matter. [2678/14]
View answerNo new Agencies or State bodies have been established under the remit of my Department since 9 March 2011.
22. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform if he will provide a breakdown, on a county basis, of the number of appeals received by the Commissioner of Valuation after revaluations; and if he will make a statement on the matter. [51928/13]
View answerConducting a revaluation of all commercial and industrial properties in the State has been a policy of successive Governments since the enactment of the Valuation Act, 2001 and, as I mentioned in a previous reply, the Commissioner of Valuation has, in accordance with that policy, been conducting a revaluation programme since 2005. The revaluation programme which has been completed in three County Council areas in Dublin, began in November 2005 in the South Dublin County Council area and has since been rolled out to the areas covered by Fingal and Dún Laoghaire-Rathdown County Councils.
The revaluation of South Dublin was completed in December 2007, Fingal was completed in 2009 and Dún Laoghaire-Rathdown was completed in 2010. After publication of the revaluation, the Act provides for an appeal to the Commissioner of Valuation and following the Commissioner's decision on this appeal, the ratepayer has the further option of making an appeal to the independent Valuation Tribunal. There is also a further appeal on a point of law to the High and Supreme Courts.
In reply to the Deputy's question, I am setting out the number of appeals received by the Commissioner of Valuation following the publication of the revaluation results in the three local authority areas where the revaluation has been completed. For completeness, I am also supplying the number of subsequent appeals that were made to the Valuation Tribunal, where the occupiers of property were dissatisfied with the Commissioner's decisions on appeal.
The revaluation of the Dublin City Council area and the rating authority areas of Waterford City and County and Dungarvan Town Council was completed recently and the results published on 31 December 2013. As the subsequent appeal period will run until 8 February 2014, similar statistics to those shown in the following table are not yet available.
|
Rating Authority Area |
Number of Appeals to the Commissioner of Valuation |
Number of Appeals to the Valuation Tribunal |
|
South Dublin County Council |
725 (11.5%) * |
227 (3.6%) * |
|
Fingal County Council |
819 (14.4%) |
100 (1.75%) |
|
Dún Laoghaire-Rathdown County Council |
1,148 (22.2%) |
302 (5.84% |
*% of Revaluations by the Commissioner of Valuation.
23. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform his views on the overall bill for legal services incurred by the State; the steps he is taking to co-ordinate actions to achieve greater value for money; and if he will make a statement on the matter. [2679/14]
View answerIn recent years, with a view to achieving significant reductions in legal costs, my Department has been actively engaged with the State's Law Offices and the Department of Justice and Equality, which are critically involved in the engagement of legal services. Prior to 2011, two separate reductions, each amounting to 8%, had been effected in regard to legal fees. In the period from 2011 onwards, these reductions have been augmented by a range of measures including:
1. a reduction of 10% in Criminal Legal Aid fees;
2. changes in regard to one day fees in the District Court, rates payable in respect of travel and subsistence and the rate paid for sentence fees in the Circuit and Higher Courts;
3. the introduction of a pre-approval process prior to the engagement of expert witnesses and a time limit of 24 months for submission of fee claims;
4. a further 10% reduction in brief and refresher fees paid by the Office of the Director of Public Prosecutions in parallel with reductions in fees payable under the Criminal Legal Aid Scheme; and
5. a 10% reduction in Tribunal fees.
With the objective of further reducing legal costs, my Department has supported the introduction in both the Chief State Solicitor's Office and that of the Director of Public Prosecutions of enhanced mechanisms for rigorous examination of claims. These enhanced mechanisms and reductions in fee levels have resulted in a dramatic decline in expenditure on legal fees - for example, expenditure incurred by the Chief State Solicitor's Office on fees to counsel has been reduced by 46% since 2008.
It is intended to examine the level of legal fees across Government Departments and agencies in the light of the relevant expenditure allocations decided by the Government in the context of the recently-published Revised Estimates Volume 2014. It is envisaged that my Department will engage with the relevant parties with a view to achieving the necessary adjustments to ensure adherence to such allocations.
In addition, my Department, through the Office of Government Procurement, has a particular responsibility to assist public bodies that procure legal services with the objective of leveraging resources in order to achieve best value for money. In that regard the Office of Government Procurement will work across Government Departments and Agencies to examine legal services spend across the public service, will conduct a review of the markets for the various different services involved such as employment law, conveyancing, tax law, etc. and determine appropriate commercial strategies to address the markets.
24. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the amount of funding that he will be making available for both emergency works, as a result of recent damage, and a more sustainable, long-term solution to tackle the serious problem of coastal erosion; and if he will make a statement on the matter. [2693/14]
View answerThe investigation and addressing of coastal protection problems are matters for the Local Authorities concerned in the first instance. It is open to the Local Authorities to apply for funding to deal with coastal protection under the Office of Public Works' (OPW) Minor Flood Mitigation Works & Coastal Protection Scheme. Any application received will be assessed under the eligibility criteria, which include a requirement that any measures are cost beneficial, and having regard to the overall availability of funding.
OPW wrote on 10th January, 2014 to City and County Managers in coastal areas indicating that it will accept applications under its Minor Flood Mitigation Works & Coastal Protection Scheme for funding to assist with repairs to built flood defences and coastal protection structures which have been damaged by the recent storms. This is a once-off measure to reinstate built coastal defences to their pre storm condition. The specific application form for this entitled Coastal Storm Damage Flooding Questionnaire 2014 is available on OPW's website www.opw.ie under Flood Risk Management. Any work for which funding is sought will be carried out by the local authorities.
It is not possible at this point to say what amount of funding will be made available to assist Local Authorities in dealing with the storm damage to coastal protection structures. This will depend on the submissions received and the assessment of those submissions. Applications approved for funding under the Minor Flood Mitigation Works & Coastal Protection Scheme will be funded from OPW's overall Flood Risk Management capital allocation, which for 2014 is €44.2m. It is also open to Local Authorities to carry out flood mitigation and coastal protection works using their own resources.
Coastal erosion is a natural and ongoing process and needs to be considered in a holistic way as its impact can vary greatly in different locations and over time. It only becomes a problem when it threatens human life, infrastructure and properties. The Government recognises this and is taking active measures to assess and monitor the risks of coastal erosion. The Irish Coastal Protection Strategy Study (ICPSS) is a major examination to assess and identify the most significant areas of erosion risk for the entire national coastline. This major study is effectively complete and it will provide invaluable and essential information required to inform policy in this area going forward particularly for Local Authorities in relation to the proper planning and development of coastal areas.
