Dáil Éireann díospóireacht -
Thursday, 13 Feb 1997

Vol. 474 No. 8

Written Answers. - Financial Incentives.

Brendan Smith

Ceist:

28 Mr. B. Smith asked the Minister for Finance his views on the need to provide specific financial incentives to business people who invest in small business premises in rural towns and villages; if his attention has been drawn to the considerable competition which exists for small stores, particularly in relation to the multiples that are now located in most provincial centres; if his attention has further been drawn to the fact that most business premises, when refurbished, have their valuations raised and thus an additional rates burden is imposed; if his attention has further been drawn to the fact that in most instances, the enhancement or refurbishment of the premises is necessary to retain existing business and in most cases does not result in additional business; and if he will make a statement on the matter. [3944/97]

Minister for Finance (Mr. Quinn)

It would be extremely costly to the Exchequer to provide specific financial incentives to business people who invest in small business premises in rural towns and villages. As the Deputy will appreciate, there is a very large number of such towns and villages and there are numerous types of business premises. Consequently it would not be possible for reasons of the big Exchequer cost involved to introduce such a scheme.

It is accepted that there is considerable competition for small stores, particularly in regard to the multiple stores that, as the Deputy says, are now located in most provincial centres. This is a fact of modern commercial life and it also applies in the large cities where some small stores may in fact be located very close to a large multiple branch, unlike the case in rural Ireland where there could be some distance between a rural town or village and the nearest provincial centre.

In regard to rateable valuations, the position is that the valuation of all commercial property is based on its net annual value i.e. the rental value of the property. The Valuation Acts provide that any improvements, alterations or change in use that affect the rental value of a property must be taken into account in assessing the rateable valuation. That assessment, which would not necessarily result in an increase in the rateable valuation, would take into account such factors as the operation of the property market and changes in economic conditions.