Skip to main content
Normal View

Local Authority Rates

Dáil Éireann Debate, Thursday - 23 July 2020

Thursday, 23 July 2020

Questions (141, 142)

Denise Mitchell

Question:

141. Deputy Denise Mitchell asked the Minister for Housing, Planning and Local Government the way in which he plans to address the deficit caused by the reduction of funding which is usually obtained from commercial rates and non-rates sources in local councils; and if he will make a statement on the matter. [17938/20]

View answer

Denise Mitchell

Question:

142. Deputy Denise Mitchell asked the Minister for Housing, Planning and Local Government if he has sought predicted deficits due to loss of rates from local councils for 2020; if so, the amount each council has stated; and if he will make a statement on the matter. [17939/20]

View answer

Written answers

I propose to take Questions Nos. 141 and 142 together.

The levying and collection of rates are legally matters for each individual local authority. Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes.

In order to support the local government sector, my Department continues to keep local authority income, expenditure and cash flow generally under review and will work with all local authorities on both collective and individual issues arising.

The County and City Management Association (CCMA) has estimated the loss of non-rates income for 2020 to be in the region of €91 million. This is under consideration by my Department, as part of the revised estimates under preparation.

It is not possible to accurately calculate the loss of income from commercial rates in 2020 at this stage in the year, due to the range of payment plans available to ratepayers and the variety of payment patterns from different sectors of ratepayers. This is coupled with the fact that the second moiety has only been due since 1 July and is payable until the end of the year. Accordingly, the information sought in the question in relation to reduction of rates income for 2020 is not available in my Department. In order to support the local government sector generally, I will ensure that my Department will continue to keep local authority income, expenditure and cash flow generally under review.

On 2 May 2020, a waiver of commercial rates was announced to all businesses that have been forced to close due to public health requirements, from 27 March 2020, for a three-month period. The costs involved to be met by the Exchequer.

The Programme for Government - Our Shared Future, commits to reviewing the treatment of commercial rates for the remainder of the year, as a priority action. This process is underway in my Department in the context of the forthcoming July stimulus. The previously announced waiver forms part of this consideration, as does enhancement of the supports available for enterprise. In that context it is recognised that not only have many ratepayers been forced to close due to the public health requirements, but many others who remained open have suffered significant reductions in turnover.

I intend to continue supporting measures taken by my Department to assist local authorities with the financial difficulties they are experiencing since the outbreak of the Covid-19 pandemic.

Top
Share