Oireachtas Joint and Select Committees

Wednesday, 26 June 2019

Select Committee on Housing, Planning and Local Government

Local Government (Rates) Bill 2018: Committee Stage

Photo of Shane CassellsShane Cassells (Meath West, Fianna Fail) | Oireachtas source

I move amendment No. 11:

In page 11, between lines 29 and 30, to insert the following:

“(4) The Minister shall make regulations with regard to an inability to pay clause for rateable premises.”.

I will press this amendment. It seeks to make regulations regarding an inability to pay clause for rateable premises. In our earlier discussions the Minister of State spoke about the money being brought in from rates as amounting to €1.5 billion. That is funding 34% of the total local government budget. It is a significant amount of money and that has increased by some 14% over the last decade alone. I have consistently stated, in the Chamber and different committees, my fear that that money from rates is becoming a significant crutch for local authorities in how they source their funding. In that context, every year the Minister requests the councils to show restraint regarding increases, apply that restraint and ensure that they are fair on businesses. Some councils, however, in seeking to do imaginative works beyond the norm, will seek the only source of funding available and that is rates. As a result some people are unable to pay the rates and this is at a time when we are trying to promote local businesses outside of the main city centres. We have seen the impact on small towns and villages throughout Ireland. Anyone canvassing during the local and European elections would have seen that major impact.

The Minister of State mentioned earlier what the Minister for Rural and Community Development, Deputy Ring, is trying to do. The nuts and bolts of the situation, however, are that people do not have the cash to open their businesses because of debts and that is killing town centres. Certain towns are doing well and powering along but there are also many that are not. The imbalance and disparity between the bigger and the smaller ones is growing. In that context, this inability to pay clause should be inserted into the Bill. I pay tribute to directors of finances throughout the country who are trying, on an ad hocbasis, to work with premises experiencing difficulties. There are councils, chief executives and directors of finance trying their best to ensure that those experiencing difficulties are given a fair shake. We should put those efforts on a statutory footing and acknowledge the impact. An inability to pay clause should be inserted into the Bill.

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