Barry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

I move: "That the Bill be now read a Second Time."

Throughout Ireland every day of every week of the year, hundreds if not thousands of men, women and children dust off their boots, grab their jerseys and make for their local sports club. Countless training sessions and matches are played in various sports in every county and they are a vital part of the fabric of Irish life. The clubs are the lifeblood of our communities. They are kept alive and kicking by the volunteer heartbeat that sustains so much of what we take for granted. Without these men and women willing to give their time, energy and commitment, the clubs would disappear.

Over the years, thanks to the hard work and enterprise of committed volunteers, these clubs have grown from being just half-grazed fields rented off a friendly local farmer into state-of-the-art sports facilities. Part of this process has been the establishment of licensed bars to provide a social element to the clubs. These bars help to raise funds for the club and give members, particularly non-playing and older members, a social focal point. It is a safe controlled environment for members of a club to come together. Whether GAA, rugby or soccer, these clubs form the backbone of their communities, and their bars are a part of this. However, the commercial rates system hits these clubs with deeply unfair bills, and this Bill is a simple measure to help ease the financial pressure on these clubs.

The existing commercial rates system unfairly penalises clubs with a licensed premises. The current rules ensure the entire complex, rather than just the bar, is hit with charges, leaving clubs with massive commercial rates costs. Clubs with a sports hall, dressing rooms, meeting rooms and gyms are hit with commercial rates on the entire premises because they also have a licensed bar. The Bill aims to ensure clubs only pay rates on the commercial bar and not on the actual sports facility. Clubs should not be penalised for developing top-class facilities just because they have a bar.

Rates can, and are, pushing over the edge many clubs struggling to make ends meet. Bars are generally used for social events and as a fund-raising mechanism, which the hefty commercial rates bill seriously undermines. Clubs' rates charges form a minuscule part of the €1.7 billion total raised in commercial rates per annum by local authorities. It is minuscule even as a percentage of the €550 million property tax, €500 million of which is due to go back into local authorities this year, contrary to what happened last year, but that is a debate for another day. Essentially, the money raised from clubs is a small part of local government finances but a big slice of the costs for hundreds of clubs.

I call on the Government to fully adopt the Bill on its own, or add it as an amendment to the Valuation (Amendment) (No. 2) Bill 2012 which is before the Seanad. It cannot, like a number of other pieces of legislation accepted in principle, be allowed to languish on the shelves of a Department going nowhere fast. The Bill is a simple change that would ensure clubs pay rates only on the licensed bar section of their facilities. Therefore, no other bar in the locality would be at a competitive disadvantage as a result of the change because rates would still be paid on the club's bar. On a broader level, it would also help ensure alcohol is consumed in a safe controlled environment rather than through dangerous binge drinking.

Fianna Fáil believes the Valuation Act should be revisited. In particular, the definition of "community hall " in the Act should be clarified to include sports and recreational facilities provided by registered clubs. The crux of this short Bill is that only the licensed premises is to be rated and not the entire facility which is used for sporting purposes. I draw to the attention of the House the specific changes the Bill will introduce if it is accepted by the Government. The interpretation of "community hall" in Part 1 of the Valuation Act 2001 should be changed to include the facility of a registered club not forming part of the licensed premises of the club. This would give relief from rates to the non-licensed sports and leisure facilities of clubs. The legislation would achieve this through making a small change to the definition of "community hall" in the Valuation Act 2001. At present the Valuation Act states "community hall" means a hall or similar building, other than the premises of a club for the time being registered under the Registration of Clubs (Ireland) Act 1904 which is not used primarily for profit and gain, and is occupied by a person who ordinarily uses it, or ordinarily permits it to be used, for purposes which involve participation by inhabitants of the locality generally and which are recreational or otherwise of a social nature. The simple change put forward in the Bill to change the interpretation involves the insertion of just one word. This change would allow clubs to seek a review from the Valuation Office to have the non-licensed section of their premises derated. The changed definition would state "community hall" means a hall or similar building, other than the licensed premises of a club for the time being registered under the Registration of Clubs (Ireland) Act 1904. This minor amendment to the Act would make a major difference to the finances of ordinary clubs run by volunteers the length and breadth of Ireland.

I wish to clarify an additional point about the Bill in case Deputies have concerns. The legislation is not about supporting bars; it is about supporting volunteer sports clubs struggling to make ends meet. Fianna Fáil is fully committed to fighting the disastrous consequences alcohol abuse has wrought on society. We support minimum alcohol pricing and taxing off-licence sales to discourage binge drinking and ensure people consume alcohol in a controlled environment. This is an integral part of an holistic strategy to combat alcohol abuse. Supporting local clubs which provide an active social outlet for all ages and which raise funds are an important part of enabling alcohol to be consumed in a safe, controlled and responsible environment. These clubs should not be punished for developing a vibrant local organisation with a strong sporting infrastructure.

The Bill is about supporting voluntary organisations which play a vital role in our community and which are being hit with an unfair tax. Rates will still be paid on the licensed premises section of the facility. This will not leave other licensed premises at a competitive disadvantage. It will help ensure alcohol is consumed in a controlled fashion and not contribute to the dangerous binge drinking we have witnessed in recent years which is scarring younger generations.

I hope the Government appreciates the role that sports clubs play in our communities. We can take pride in the volunteer ethos that has built up small fledgling teams into strong active hubs for an entire area, with ordinary men and women coming together for common purpose and transforming their towns and villages and specific parts of our large cities and urban centres.

These clubs form the fabric of Irish community life. However, the existing commercial rates system unfairly penalises clubs that have worked hard to set up facilities for all their members. The Bill proposes to help ease the burden on these clubs. It is a small part of the finances raised by local authorities through commercial rates but a major part of the outgoings of many of these clubs. This small change to the law will make a vast difference to them.

I hope the Government will take this small but constructive step for clubs across the country. The Government can either accept the Bill and the amendments it proposes to previous Acts or it may wish to insert the provisions contained in the Bill in the Valuation (Amendment) No. 2 Bill which is going through the Seanad at present. That would be commendable on the Government's part and would reflect many of the comments that have come to me from many Members opposite who also feel this amendment is necessary in order to alleviate the great strain that has been placed on many clubs which have developed their facilities and services to their members over recent years and which form a vibrant part of the fabric of local communities.

It is also very evident in large urban centres. I have visited many clubs in Dublin and throughout the country which find themselves in a bind in this regard. Many of them have had to close facilities and not offer those services to their members, and are not able to generate the revenue to warrant the sort of investment they are making in facilities for the youth and even beyond. In many city clubs, including Parnell's GAA Club here in Dublin, I have witnessed considerable co-operation with local community centres and organisations whereby they share many of their facilities for use by the elderly, for example. Any measure that helps to alleviate the strains on those clubs in order to provide such extra facilities and services would be a positive step. It would be a recognition on the part of the Government of the anomaly in the present system. I look forward to the Government accepting the Bill or at least giving a commitment to amend the Bill that is before the Seanad.

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