Seán Fleming (Laois, Fianna Fail) | Oireachtas source

Go raibh maith agat. We will write to that Department.

No. 2414C, dated 22 September, is from Mr. Allen Morgan, who was recently in touch regarding the administration of his correspondence to the committee. The secretariat is providing him with clarifying information in that regard. In this correspondence, he asks the committee to consider a particular matter as part of our examination of the OPW's 2018 account. I propose that we note the correspondence for now and members may refer to it as part of any upcoming engagement with the OPW. There is a chapter in the Comptroller and Auditor General's report concerning the OPW, so we will be engaging with that body concerning its overall financial statements.

No. 2415C, dated 25 September, is a response from the Irish Petrol Retailers Association to our consideration of matters raised by it in regard to the Valuation Office and the Valuation Tribunal. I propose that we note the correspondence and keep the points raised in mind.

I want to follow it up in further detail. I have looked at this correspondence. At a previous meeting we asked about the valuation of car-parking spaces in some of these out-of-town locations. To summarise this correspondence, there are two issues. It referred to a two-year backlog for the 2017 appeals. I am not sure if it is the tribunal or the Valuation Office. We want that matter clarified based on this correspondence.

We really need clarification on the second item. The correspondence from the Irish Petrol Retailers Association states: "The Valuation Office has recently made some amendments to the methodology they use for service stations ... which is positive but we have been told that these amendments will not apply to stations revalued under the 2017 revaluation even where they are appealing to the Valuation Tribunal." Essentially, the Valuation Office is stating that there will be two separate methods for valuing filling stations for rates: those valued under the 2017 regulations; and those now being valued under the recent amendments. That is not fair. Given that it could take ten years for such filling stations to be revalued again, they may be at a commercial disadvantage for up to a decade. The IPRA is also saying that when filling stations appeal valuations carried out under the 2017 rules to the valuation tribunal, it will not accept the new amendments and is sticking to the old regulations. That appeals process is unfair. We want that clarified and it does not sound fair to me.

We asked the Valuation Office for a response on the issue of car park spaces at supermarkets, etc. That was mentioned in the context of rates in towns. The Irish Petrol Retailers Association graciously sent us a copy of the Valuation Office practice note regarding supermarkets. We did not get it from the Valuation Office yet, but it is its document. The petrol retailers are utterly confused by what the Valuation Office says about car parking at supermarkets. It states:

Car parking arrangements associated with retail units will be dealt with as follows:- Common car parking facilities serving retail units will be reflected in the rent passing. [Is that the rent from the landlord to the supermarket?] Under these circumstances these facilities will be reflected in the passing rent.

It suggests that where somebody has developed a facility with many shop units, including a big car park used by all the customers for all the shops, the cost of the car park will be reflected in the rent charged by the landlord who owns the property. However, we are asking about the rates and not the rent.

The practice note also states: "Where the building occupier occupies car spaces at a physically separate location then they will be valued as a separate relevant property with a description of ‘carpark’." It is stating where common car parking facilities are used for several shops, it is reflected in the rent. My question is then about the rates assessment for the landlord. Was the landlord assessed for the commercial value of the car park? It seems to be suggesting supermarkets are covered in the rent. I want to know where in the system the commercial value of the car park is valued for rates. The Valuation Office seems to be suggesting the supermarket does not pay it. That should mean the landlord does it. Are we then going to be told the same property cannot be valued twice? I have not worked that one out. I want clarification on it. It is a good question, and the answer muddied the water further as far as I am concerned. We want to know the commercial value of the car park at these shopping centres. Where is the rates demand notice and who pays them?