John Deasy (Waterford, Fine Gael) | Oireachtas source

I welcome Mr. O'Sullivan and his officials. I would like to thank him and Mr. Declan Lavelle for meeting me in Waterford recently. It was very informative. I am interested in this issue because of the revaluation process that is ongoing in Waterford and the impact it will potentially have on businesses there. Over the last two months, I have been trying to ascertain whether different Departments are up to speed with the revaluation process in which the Valuation Office is engaged, which is a technical exercise and analysis, as Mr. O'Sullivan pointed out. I did not find a lack of understanding, but a lack of cohesion in respect of the implications of the revaluation process throughout the Government, which I think is improving. Due to the statutory independence of the Valuation Office, there is perhaps a lack of appreciation in some Departments of the implications for businesses of the results of the valuation process, but I think that is changing.

Where are we now? I had a very positive meeting with officials from the Department of Public Expenditure and Reform this week. At this stage it is fair to say there is an acknowledgment within the Government that there is a problem and that something needs to be done about it. I would describe the process in which the Valuation Office is engaged as a system that was outdated and needed reform - it goes back to 1998, and there is acceptance of that - mirrored with a disastrous business environment, especially as it affects small businesses outside Dublin. What does the Government do to cushion the blow of a revaluation process that has resulted in some cases in a sharp upward adjustment for small businesses that do not have the ability to pay? That is where my interest comes from. I know these businesses. I know the profiles of the individuals involved and I have a serious concern that they will be put out of business. This will certainly assist them in going out of business.

The larger issue is that this is self-defeating. Our rates base has shrunk and it is unsustainable in many cases to increase rates. I have examples from my home town of Dungarvan which were given to me by the chamber of commerce. Rates for a clothes shop are potentially going from €800 to €9,000. There is an appeals process and a potential tribunal process that goes with that and the office works with the individuals involved, but that is unsustainable. I know the individuals involved in many of these businesses and it will lead to unemployment and non-hiring of people in future. There is an issue for the State in that respect as well.

Following the meeting with officials from the Department of Public Expenditure and Reform, I can say the problem is being acknowledged. There is legislation in the pipeline. Over the next two months, departmental officials will take a look at that legislation, potentially amending it in respect of issues such as spreading out payments over time. That leads to an issue of funding with regard to any deficits at local authority level. That is what will be examined over the next couple of months.

I understand that the Valuation Office is given a role that is underpinned by legislation, and officials at the office go about their work based on that legislation. There are policy issues here that obviously they cannot address and I accept that. A comment was made to me by a number of local authority officials as I was educating myself in this process. They were critical of the fact that there was not more interaction between their offices and the Valuation Office. They understand the statutorily independent role that the Valuation Office has, but they believe their local knowledge and local experience with particular small businesses is being ignored. When they tried to communicate that to the Valuation Office, however, they were told frankly that they should not call the office. I can understand why political interference would be guarded against by the Valuation Office at all times, but I heard this comment so many times I have to take it seriously. Local authority officials say that there should be a role for local authorities to have more input into the process than is currently the case.