Tá áthas orm bheith ar ais arís roimh na Nollag.
As Senators are aware, property valuations as determined under the Valuation Acts provide the basis for rates revenue raised by local authorities. The revenue to be raised from rates in 1987 is estimated at £175 million, a major element in local budgets. Clearly it is important that the valuation system is operated on a cost effective basis and that we have flexible and efficient procedures for listing properties for valuation, determining valuations and the hearing of appeals. The bulk of the existing valuation code dates from the mid-19th century, the Act of 1986 being one of the few valuation statutes in this century.
During the passage of that Act, Members of both Houses expressed their disappointment that the Act did not go far enough in reforming and updating the valuation code. In responding to these views the then Minister for Finance explained that the Valuation Acts were being reviewed and that further legislation of a more wide-ranging nature would be introduced in due course. The proposals in this Bill must be seen as a stage in that process. The examination of other aspects is continuing and my objective is to bring the entire legislation into line with modern requirements and to have a single modern statute at the earliest possible date.
The main purpose of the Bill is: first, to establish a valuation tribunal to hear appeals against rateable valuations determined by the Commissioner of Valuation in the course of first appeals to him, to replace the present system of appeal to the Circuit Court; secondly, to introduce continuous revision of the valuation lists throughout the year in place of the existing single annual revision; thirdly, to provide for the valuation of public utility undertakings on a global basis and the apportionment of the valuation between the functional areas of local authorities, and fourthly, to provide for the delegation of functions by the Commissioner of Valuation.
Before dealing with the individual sections of the Bill, I would like to make some general points about the need for the measures proposed and their effects. First, I will deal with the valuation tribunal. Under the existing procedures for appeals in the valuation areas a first appeal can be made to the Commissioner of Valuation and a second appeal against his determination can be made to the Circuit Court. Valuation appeals raise specialised questions about technological progress, investment returns, property uses and commercial practices, issues which are best decided by a specialised tribunal. The interested parties in the valuation professions actively support the establishment of a specialised appeal authority.
It is, therefore, proposed to establish a valuation tribunal to determine all second appeals in the rating area. It will consist of a chairman, deputy chairmen, professional valuers and others with special competence in valuation and legal matters. Determinations of the tribunal may be appealed to the High Court on a point of law.
I turn now to the second measure proposed in the Bill, namely, the introduction of continuous revision of valuation. At present the valuations of properties listed for revision are notified to local authorities for publication on the statutory date of 1 November each year. The process of appeal against the valuations then begins together with the listing of properties, including any new property for first-time valuation, for the following year's revision. Such requests for revision, which must be submitted to the Valuation Office by 14 February, average 60,000 per annum and form the largest part of the workload of the Valuation Office.
Under present legislation all of these requests for revision have to be submitted during the same short period, forcing both local authorities and the Valuation Office to complete various tasks at particular times or within prescribed periods, irrespective of the workload. Under the proposed system of continuous revision, a ratepayer, a local authority or an officer of the Commissioner of Valuation may, at any time during the year, seek a revision of the rateable valuation of property entered in the valuation lists or the inclusion of new properties.
The commissioner will appoint persons from among his staff to investigate the requests for revision. Such requests will be dealt with within six months of receipt or as soon as possible thereafter. The results of the revision will be incorporated in a list of valuations which the commissioner will issue to the rating authorities at quarterly intervals throughout the year.
The commencement date of continuous revision will be fixed by ministerial order. The provision for continuous revision will promote greater efficiency in operating the valuation system and it will also ensure that revisions can be quickly and regularly entered in the rate books. It can be confidently expected that the chance will be welcomed by local authorities and the professional valuation bodies.
The Bill also includes provisions relating to the global valuation of public utility undertakings and to the apportionment of such valuation across local authority areas. The term refers to those public or private concerns, which supply services of the public on a national or regional basis in areas such as electricity (Electricity Supply Board), gas (Bord Gáis Éireann), telephones (Bord Telecom Éireann), piped TV networks or any other service. A distinctive feature of these undertakings is that they consist of one or a few main production units such as an electricity generating station but, in producing and distributing the service, they comprise a network of lines, pipes, cables or wires.
These "appendages" are an integral part of the undertaking and must, therefore, be included in the valuation. Apart from the technical problem of valuing, the properties extend into many local authority areas and the apportionment of their valuation across such areas is complicated. A formal statutory basis for determining the global valuation of utilities, together with a means of apportioning such valuation across the local authority jurisdictions, is a prerequisite for progress in this area.
Finally, the Bill provides for delegation of functions by the Commissioner of Valuation. Under the present legislation the commissioner has virtually no discretion to delegate any of his functions. For instance, there are about 4,000 first appeals each year but all of these appeals must be personally determined by the commissioner. Many of these appeals could be dealt with by either the chief staff valuer or one of the staff valuers in the Valuation Office if the commissioner had authority to delegate appropriate authority to his officers. Delegation of functions where appropriate will improve the operational efficiency of the Valuation Office. It will give the commissioner more scope to concentrate on the complex valuation cases, the overall management of the valuation system and the examination of valuation legislation.
I now turn to the detailed provisions of the Bill. Section 1 defines the terms used. Section 2 provides for the establishment of a valuation tribunal to hear appeals against determinations of the Commissioner of Valuation on first appeals against rateable valuations. Details of the constitution and procedures of the tribunal are set out in the First Schedule to the Bill. The decision of the tribunal will be final subject to a right of appeal to the High Court on a question of law. Appeals already lodged and pending before the Circuit Court at the time of the establishment of the tribunal will not be affected.
Section 3 provides for continuous revision of the valuation lists throughout the year. The section provides that a ratepayer, a local authority or an officer of the Commissioner of Valuation can seek a revision of the rateable valuation of property at any time an that the Commissioner of Valuation will issue the results of the revision at quarterly intervals to local authorities. The owner or occupier of any property listed for revision will be so notified by the rating authority which will also notify him of the outcome of the revision and his right to appeal against it to the Commissioner of Valuation. The section also provides for appeals to the valuation tribunal against decisions of the Commissioner of Valuation on first appeal and sets out the procedures involved.
Section 4 provides for the valuation of public utility undertakings on a global basis by the Commissioner of Valuation. The global valuation will be based on an estimate of the effective capital value of the undertaking as a whole. The effective capital value is defined as the aggregate of: (i) the site value(s); (ii) the depreciated replacement cost of other property of the undertaking; (iii) the value of any rights or easements owned or occupied by such undertaking; and (iv) the value of any right of the undertaking to transmit radio, television or telecommunications signals. The section also provides that the global valuation may be apportioned by the Commissioner of Valuation across local authority areas. Any undertaking valued on a global basis will have the right of appeal to the commissioner and the valuation tribunal.
Section 5 sets out the procedures to be followed in the case of an appeal to the High Court in relation to points of law arising from decisions of the valuation tribunal. Section 6 provides that the Commissioner of Valuation may delegate any of his functions under the Valuation Acts to any officer of the commissioner.
Section 7 provides authority to set fees in respect of appeals to the Commissioner of Valuation or to the tribunal or in respect of an application to the commissioner. Section 8 provides that the form of various documents required for the purpose of the Valuation Acts can be prescribed by the Minister for Finance in consultation with the Commissioner of Valuation. Section 9 contains the usual provision for the payment of expenses incurred in the administration of the Act.
Section 10 provides appropriate authority to deal by regulation with unforeseen administrative difficulties which may arise in bringing the Act into operation. Any regulation made under this section must be laid before each House of the Oireachtas. Section 11 provides for the laying of certain orders and regulations by the Minister for Finance before the Houses of the Oireachtas. Section 12 gives the short title of the Act.
The First Schedule to the Bill provides for the constitution, membership, terms and conditions of office, staffing, powers and procedures of the valuation tribunal to be established under section 2. The Second Schedule relates to the property of public utility undertakings for the purposes of valuation under section 4. I believe that this is progressive legislation. I commend the Bill for the approval of the House.