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Commercial Rates Valuation Process

Dáil Éireann Debate, Tuesday - 30 June 2015

Tuesday, 30 June 2015

Questions (276, 277, 278)

John McGuinness

Question:

276. Deputy John McGuinness asked the Minister for Public Expenditure and Reform the engagement between his Department, the Department of Communications, Energy and Natural Resources and the Department of the Environment, Community and Local Government regarding the impact of the valuation process for wind energy plants on our climate change goals, including our renewable energy targets. [26173/15]

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John McGuinness

Question:

277. Deputy John McGuinness asked the Minister for Public Expenditure and Reform if any working group or other such committee was put in place in respect of the valuation process for wind energy plants. [26174/15]

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John McGuinness

Question:

278. Deputy John McGuinness asked the Minister for Public Expenditure and Reform the engagement between his Department, the Department of Communications, Energy and Natural Resources and the Department of the Environment, Community and Local Government and their counterparts in Northern Ireland and Scotland regarding the valuation process for wind energy plants. [26175/15]

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Written answers

I propose to take Questions Nos. 276 to 278, inclusive, together.

These questions all relate to consultations on the valuation process for wind energy plants.

The Valuation Office completed their revaluation of Limerick at the end of 2014 when final certificates of valuation issued. The final values attributed to wind energy farms would, after the application of the Annual Rate on Valuation, determined by the local authority, result in a substantial increase in the rates bill for these properties. In parallel with the Limerick revaluation, Minister of State Harris was bringing the Valuation (Amendment) (No. 2) Bill 2012 through the Oireachtas on my behalf.

There were a number of consultations in February and March between my officials and relevant stakeholders including the Irish Wind Energy Association and the Irish Wind Farmers Association regarding the increase in rates and whether changes could be made to the legislation that was going through the Oireachtas at that time. There was also substantial correspondence from interested parties up until the Bill was passed on 14 April 2015. The matter was also raised at Dáil Committee and Report Stages of the Valuation (Amendment) (No. 2) Bill 2012.

The Department of Communications Energy and Natural Resources were made aware of the concerns that were being expressed by the wind energy sector and the calls that were being made for amendments to the legislation.

There was no working group established to consider the valuation process. The Commissioner of Valuation is responsible for the drawing up and maintenance of valuation lists and is completely independent in the exercise of his functions. Valuations are made in accordance with the provisions of the Valuation Act 2001 and I have no function in the valuation process. The role of the Commissioner is to draw up a valuation list which local authorities can use to allocate the rates burden on a fair and independent basis. There would have been no role for a working group to consider the valuation process.

The valuations made on wind energy farms are the subject of appeals to the Commissioner of Valuation as provided for in the Valuation Act 2001. I and my colleague the Minister for Communications, Energy and Natural Resources are aware of the concerns raised by the sector but we are also conscious of the need to respect the appeals processes that are provided and not to pre-judge the outcome of those procedures. This was made clear in the Dáil on Committee and Report Stages and when Minister Harris stated in conclusion at Report Stage on 31 March 2015. "We should allow the appeals process to take its course. A number of appeals are under active consideration. Let us see what arises from them and fully assess the impact. If there is a need for a policy change, let us consider it". When the outcome to the appeals process is known my Department will communicate with the Department of Communications, Energy and Natural Resources in relation to any issues that might  arise for energy policy.  

There was no direct contact between my Department and counterparts in Northern Ireland and Scotland. The Valuation Office are in regular contact with their counterparts in other jurisdictions and meet on a regular basis to discuss, in a general way, matters of mutual interest. During the consultations that led up to the finalisation of the Valuation (Amendment) (No. 2) Bill 2012 the Valuation Office did contact their counterparts in Northern Ireland and Scotland to get basic information on the trends in valuations of wind farms. This information showed that there has also been substantial increases in valuations in Northern Ireland following their recent revaluation but the valuations are not directly comparable as they have different legislation and their valuations would have been made with reference to the circumstances prevailing on different valuation dates.

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