Mr. Paul Lemass:

Yes. In some local authorities the figure is as low as 60% for those who pay rates, with 40% not doing so. It is a very significant concern for us and we want a system that is equitable and fair. Therefore, we want to empower local authorities and ensure they can collect rates from all liable ratepayers. That will be part of the revised legislation being drafted now and we hope to have it before the Houses of the Oireachtas in the first half of this year. It is on the list of priorities agreed with the Clerk of the Dáil.

We can also consider the impact of a revaluation. As the legislation currently stands, rates are payable in two moieties, typically one in January and one in July, when the bills go out. If a person has a rates bill, half of it must be paid upfront in January and half must be paid in July. That would be the expectation. The provisions in the new legislation will be that it would be spread out over the course of the year, making it much more manageable for businesses to spread the payments throughout the year. I also suggest that most local authorities of which I have experience would have chief executives and finance departments that are very willing to engage with ratepayers who have difficulty. In many cases, they would engage and agree schedules of payment to help or accommodate people who have experienced increases or who are having trading difficulties. That happened a lot during the downturn.

There are a couple of other points to be emphasised. When a revaluation occurs, the Minister generally signs a rates limitation order. The objective is not to increase the take in rates and it is about the distribution of the rates burden within the county. In the revaluations that took effect for 2018, rates limitation orders were issued to those local authorities. That means they are limited in any increase to the consumer price index and an increase for "buoyancy", which typically relates to new or extended properties. The individual valuation of one property relative to another might change but the overall take is not expected to change as a result of a valuation. The more frequent revaluation process will ensure that the spikes mentioned by the Deputy will be a thing of the past.

Before Christmas I also referred to section 66 of the 2001 Act. I am aware that some businesses require support and rates are not the only lever available to a local authority to provide for small to medium enterprises. Section 66 of the 2001 Act is available and being used by a number of local authorities to provide enterprise supports to small and medium businesses. I highlight the fact that the Department has written to local authorities in its most recent circular, asking them to exercise rates restraint. To be fair, although there were increases last year, in most cases there were no increases since 2008. Last year and in some cases the previous year saw a slight increase but we have to go back to 2008 for increases before that in many cases.

With respect to the overall funding model for local government, the Deputy is aware that the Minister for Finance, Deputy Donohoe, has announced a review of the local property tax. The Department will participate in the review to ensure it addresses, as much as possible, the matter of local government funding. With a collection rate of 84%, we are keen to take it up to a level comparable with the Revenue Commissioners, which has a rate of 96% or 97%. That would bring a significant increase to the amount of revenue coming to local authorities and help them in that regard.

We are aware that harmonisation is a challenge.

However, it has been set out in the legislation that this can take place over a period of ten years. It is matter at local level to choose how slow or fast to undertake that process. Some local authorities have completed it while others are taking a more steady-as-it-goes approach, taking it over multiple years. However, that is a matter of individual local authorities.