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Commercial Rates

Dáil Éireann Debate, Monday - 11 September 2017

Monday, 11 September 2017

Questions (2011, 2017, 2046)

Kevin O'Keeffe

Question:

2011. Deputy Kevin O'Keeffe asked the Minister for Housing, Planning and Local Government his plans for legislation governing the rates structure to enable sectors of society (details supplied) to obtain rates waivers under specific conditions and particularly in respect of weather related damage. [37942/17]

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Joan Burton

Question:

2017. Deputy Joan Burton asked the Minister for Housing, Planning and Local Government his plans to modernise and consolidate legislation governing commercial rates; the status of the drafting of the rates Bill approved by Government on 11 April 2017; and if he will make a statement on the matter. [38082/17]

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Charlie McConalogue

Question:

2046. Deputy Charlie McConalogue asked the Minister for Housing, Planning and Local Government the timeframe for the new commercial rates Bill; his plans for helping small and struggling businesses that are finding it impossible at present to pay their commercial rates bill under the present system; and if he will make a statement on the matter. [38397/17]

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Written answers

I propose to take Questions Nos. 2011, 2017 and 2046 together.

Local 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 pursuant to the Valuation Acts 2001 to 2015. 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 of 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.  Rates income is a very important contribution to the cost of services provided by local authorities such as roads, public lighting, development control, parks and open spaces. Locally elected members adopt the annual rate on valuation they consider necessary in order to provide the required services.

The Commissioner of Valuation, who has responsibility for valuation matters, is conducting a programme of revaluation of all commercial and industrial properties throughout the State. The purpose of the revaluation process is to provide for more consistent and up-to-date valuations for rating purposes and to assist in providing a more equitable distribution of valuations across those liable to pay rates. The Valuation Office comes under the remit of the Minister for Justice and Equality.

The legislative basis for the levying of rates is spread over a number of enactments, some dating back to the 19th century. Many of the provisions are outdated and not suitable for business trends in the modern era. My Department has developed legislative proposals to modernise and consolidate the legislation governing commercial rates.  Among the measures included in the General Scheme of the Bill are provisions to allow a local authority to introduce rates alleviation schemes to support specific national and local policy objectives.  The Government approved the drafting of a Rates Bill at its meeting on 11 April 2017.  These proposals will be subject to pre-legislative scrutiny in due course.

The draft legislation does not provide for rates waivers for weather related issues encountered by small businesses.  In instances where small businesses have difficulties arising from weather related damage, other supports have been made available by the Government. Most recently in Donegal, the Government introduced a Humanitarian Support Scheme to assist small businesses and community, voluntary and sporting bodies.  This scheme is funded by the Department of Defence and administered by the Irish Red Cross.

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