Richard Bruton (Dublin North Central, Fine Gael)
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Question 14: To ask the Minister for Finance if his attention has been drawn to the upward revaluation of hotels which bears no relationship to earning capacity and if the exceptional circumstances review clause which existed prior to 2001 should be restored for rateable valuation to provide temporary relief [46677/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I should point out that the Commissioner of Valuation is independent in the exercise of his duties under the Valuation Act 2001 and I, as Minister for Finance, have no function in decisions in this regard. Under section 28 (4) of the Act, a Revision Officer of the Commissioner may carry out a revision of valuation in relation to a particular property only if a material change of circumstances (MCC) has occurred since the property was last revised. MCC is defined in section 3 of the Act as a change of circumstances, which consist of a new building, a change in value due to structural alterations of an existing building, total or partial demolition of a building or a sub-division or amalgamation of relevant property.

The definition does not allow for a revision of valuation where the change in value is due to economic factors, differential movements in property values or other external factors such as roads or other infrastructural development in the vicinity of a property. The valuation of all commercial property, including hotels, is determined by reference to the values of comparable properties on the same valuation list. It is acknowledged that all property owners/occupiers, including the hospitality sector, are currently facing economic challenges and the only means, under statute, by which external influences on individual property values can be adequately addressed by the Commissioner, is through the national revaluation programme which is currently underway.

However, as was mentioned in the adjournment debate in the Dáil on 12th October 2010, the Valuation Act 2001, which has been in operation for eight years, is being reviewed. The Commissioner is now examining certain provisions of the Act with a view to bringing forward reform proposals and in the context of this review, the various issues surrounding the "material change of circumstances" have been included in the deliberations.