Dáil Éireann Debate, Wednesday - 29 January 2014
129. Deputy Michael Healy-Rae asked the Minister for the Environment, Community and Local Government his views on introducing a rates reduction for struggling small businesses (details supplied); and if he will make a statement on the matter. [4454/14]
View answerLocal authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The levying and collection of rates are matters for each individual local authority.
The annual rate on valuation (ARV), which is applied to the valuation for each property determined by the Valuation Office to obtain the amount payable in rates, is decided by the elected members of each local authority in the annual budget and its determination is a reserved function.
I am acutely aware of the pressures on small and medium - sized businesses at the present time. Local authorities have been asked by my Department to exercise restraint or, where possible, to reduce commercial rates and local charges for 2014. Local authorities have responded well to such requests in recent years and in 2013, 87 out of the 88 rating authorities have either reduced their ARV or kept it the same as in 2012.
The reorganisation of local governance structures, set out in the Action Plan for Effective Local Government – Putting People First is being given effect through the Local Government (Reform) Act 2014. A key objective of the reform programme is to reduce the burden on ratepayers and indeed taxpayers generally, by reducing cost and maximising efficiency.
The new structures of local government, including the establishment of municipal districts, provide an opportunity to achieve a more coherent approach to rates and charges on a county-wide basis having regard to funding requirements and the need to support employment and business competitiveness. The Act provides for rates harmonisation, to cater for differences between ARVs of towns and counties, to be achieved over a ten year period. While the determination of ARVs will continue to be a reserved function of the new authorities, I am determined that the savings and cost efficiencies that will accrue from the new structures should be passed on to ratepayers in the form of lower charges.
I have also provided in the Act for the removal of the liability that is placed on new occupiers of properties for up to two years of outstanding rates of the previous occupier. This is a strong indication of the Government’s commitment to removing any barrier to enterprise development and to support business start-ups and those existing businesses wishing to expand or relocate.
I will continue to keep the approach to rates by local authorities under active review, and am determined that every avenue will be pursued to optimise efficiency and contain costs in the local government sector.
