John Deasy (Waterford, Fine Gael) | Oireachtas source

The city and county of Waterford. It is based on a 2011 analysis but it has become very problematic. I am not exaggerating when I say that in the region worst affected by the recession, the sector most badly affected within that region, the retail sector, has been very negatively affected by this process. In some cases, the retail sector in Waterford city and county has seen commercial rates double or even treble. The average increase in the retail sector is between 40% and 50%. At the same time, the large industrial players in the region have seen their rates decrease substantially. The accusation that is being made by the retail sector is that there is a massive disconnect between Dublin and what is going on at ground level and having examined the data in recent days, I believe there is some truth to that. The administrative system was devised and put into operation in a different economic time. The policy behind it needs to be examined. It is an issue for everyone in this room because the entire country is going to go through this process. It is not confined to Waterford, Dublin and Limerick. We have a problem here. The people in the Valuation Office are doing their job and doing it well. They were given a task and indeed, there is some logic to revaluing properties but the effect it is having on one sector is extremely detrimental and does not make sense for the economies that exist, particularly in Waterford. There are issues here with regard to value for money. The Valuation Office has appeared before this committee before and we need to ask about the processes and procedures being followed. There is also a policy issue here vis-à-vis the Department of Finance and whether it understands the effect this is having on businesses around the country. It is not an insignificant matter, at a time when people in businesses are on their knees, to get a bill which amounts to a doubling or tripling of one's commercial rates. Such bills will send a lot of businesses to the wall. In many cases, business people have told me that will have to lay off staff if they have to pay their new commercial rate bills. That has an effect on the State in terms of the payment of unemployment benefits and so forth. The process that has been undertaken by the Valuation Office is having a significant impact and it cannot be ignored. My region is one of the worst affected by the recession, with 20% unemployment. The worst-affected sector within that region, retail, is being targeted here and I do not think we can ignore that.

I am asking that we contact the Department of Finance to ask about the larger, macro-economic issues that are resulting from this revaluation process, if possible. At the very least, it would make sense for this committee to do that.