Brian Stanley (Laois-Offaly, Sinn Fein) | Oireachtas source

I welcome the Bill and compliment Deputy Barry Cowen on introducing it in the House. Having listened to the Minister of State's comments on the technical difficulties and the nuances involved, I hope the Government will accept the legislation and allow it to proceed to the next Stage. A significant number of representations have been received from sports clubs, especially GAA clubs, requesting cross-party support for the Bill. Given the value of sports clubs and community organisations, this is a valid request.

As Deputy Regina Doherty noted, Ireland is fortunate to have so many people making a voluntary contribution to their communities. All of us will be able to identify people in our local areas, including family members, who do great work in voluntary organisations, including sports clubs.

Rates should only be paid on premises and parts of buildings that have a commercial purpose and generate profit. This is clearly not the case in respect of a large number of community halls and sports premises. The Bill provides for an exception where such premises also contain a bar selling alcohol. It is appropriate that parts of premises used as a bar be subject to rates given that bars generate profit, have a commercial purpose and compete with private bars which frequently have a liability for high commercial rates. We must remember, however, the onerous task facing clubs, including many clubs in County Laois. Trumra, for example, is an area with only 27 families.

Even larger clubs such as Portlaoise are obliged to shoulder a huge burden each year in the context of trying to raise funds. Their efforts in this regard include holding lotteries and there is an annual draw run by the county board. A percentage of the funding from the latter is allocated to local clubs. The fund-raising in question is onerous and is done on a weekly basis by volunteers. I lived in both England and Scotland and I am aware that there are no comparable organisations or similar voluntary efforts in those countries. I do not mean that in a negative but we are lucky that volunteers make an exceptional contribution in carrying out the work to which I refer, be it for the GAA or soccer clubs such as Portlaoise FC, whose grounds are located close to my home. The volunteers to whom I refer make a huge effort every day and night of the week.

I take this opportunity to recognise the contribution sports clubs and community organisations make to society. Implementing the legislative changes proposed in the Bill would be a practical recognition to that contribution. The changes in question would go some way towards redressing the effect of the cuts in funding that have been implemented across the community sector. Those cuts have obliged many sporting and community organisations to severely curtail their activities. In addition, the collapse in people's incomes must be taken into consideration. Many individuals are earning a third or a half of what they earned seven or eight years ago. This means that they cannot buy a €100 ticket for an annual draw as they did in the past. This has added to the impact of the cuts made in respect of the community sector. I acknowledge yesterday's allocation of sports capital grants by the Minister of State at the Department of Transport, Tourism and Sport, Deputy Ring. At first glance, I can see that he looked after a number of clubs and organisations in my county that were in need of funding. It appears the Minister of State and his officials seemed to take into consideration those clubs which were badly in need of funding and a hand-up rather than a handout.

The cuts resulting from the economic downturn have had a detrimental impact on young people in particular. On Tuesday evening last, I made a contribution to my party's Private Members' Bill relating to mental health and suicide. The rate of suicide among young people is alarming. This is a major issue in rural areas and also in some urban working class ones. Ireland has the highest rate of suicide rate among young men in the EU. I wish to highlight the importance of sports clubs in countering suicide and providing young people with both a focus, a connection to their communities and an opportunity to socialise. Numerous studies have illustrated the beneficial impact of participation in sporting and other activities in the context of social adjustment and mental well-being, especially in the case of young people. The Bill does not seek to address this matter. By easing the financial burden imposed, via rates, on community and sporting organisations' premises, however, it would allow the organisations in question to continue to provide services and facilities and to expand their operations in order that more members of communities might be included.

Radical changes in respect of the funding of local organisations and community development groups are to be introduced in January. Those organisations and groups have created a great deal of employment and provided many services over the years. The changes the Minister for the Environment, Community and Local Government, Deputy Hogan, proposes to introduce under the so-called realignment will completely alter existing structures and also the way in which the organisations and groups to which I refer operate. Some of them may even be forced to cease operations. This is particularly ironic in view of the fact that the European Court of Auditors identified Ireland's way of funding the entities in question through Leader and other programmes as being the best model.

There are other issues relating to rates and many people have highlighted the excessive burden they impose on struggling businesses. Something of a catch-22 situation exists in this regard. High rates can force people out of business and when this happens, the income and rate bases of local authorities shrink. Local authorities need the money they get from rates. The matter of legacy rates also arises. I refer to a situation where one business closes down and vacates a premises and where that which replaces it is obliged to pay the same rates. Perhaps the Minister of State's officials might take note of the fact that this issue must be addressed. New businesses which move into premises previously occupied by other concerns must pay the same rates and no account is taken of their potential profitability. This makes little sense. There is a small window of opportunity in this regard in the context of the new local government legislation, which contains a provision whereby elected council members can make alterations, if they so wish, to try to ease the burden on businesses in their municipal districts. The Department must make local authorities aware of this provision by means of a circular. I previously served as a councillor and I am aware that circulars are always issued to management but that they do not always find their way to local authority members. Councillors might only become aware of the existence of particular circulars when they attend local authority meetings. It is important that the power to make alterations be made known to local authority members.

In the context of the Bill before us, the issue of profitability must be taken into consideration. Imposing rates in respect of the total area of the property of GAA and other clubs does not make any sense and is unfair. Those properties are often used for bingo and other recreational activities, community meetings, etc. It is important that we should differentiate in this regard. I recognise that it will be difficult to find a way to deal with this matter and I accept that there are technical difficulties involved. If, however, the Government has the will, then a way will be found. Anyone can state that previous Administrations did not take action in respect of this issue but today we are all calling for it to be addressed. We are also calling for local clubs with bars on their premises to be given fair treatment and only charged for the areas on their properties that are being used for commercial purposes. We need to relieve the pressure under which such clubs are operating.

I support this very positive Bill put forward by the Fianna Fáil Deputies. I hope the Government will allow it to proceed to Committee Stage.

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