John Deasy (Waterford, Fine Gael)
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This brings me to my second point. I am going to question whether that actually happens. I will get to the nub of where I am going with this. The Valuation Office, as Ms Tallon is aware, is engaged in a revaluation process. In the case of Waterford City and county it is undertaking a comprehensive revaluation of businesses and their commercial rates levels as we speak. Certificates are being issued. In many cases, retailers in particular have received certificates that would suggest they will be asked to pay 200% or 300% more than at present. The average increase for retailers is 50% to 100%. What has happened is that the rates base has shrunk in the past five, six or seven years and less money is being taken in by the local authorities. The figures prove this. It is arbitrary and it is a patchwork around the country. They is no consistency whatsoever. The Valuation Office is engaged in a revaluation. As it said to a collective group of businessmen in my home town of Dungarvan last week, when asked why the rates were being increased on their backs, the answer was "You are the ones who are left." Effectively, they are the people who cut their cloth, were efficient and let people go, yet the reward was a doubling and tripling of their rates in many cases. Even though the Valuation Office has a statutorily independent role, which is underpinned by legislation, there is a very close relationship with the Department of the Environment, Community and Local Government. The officials in local authorities levy and collect the rates in towns and counties throughout the country. What is happening is that the rates base is shrinking, a revaluation process is being undertaken and the ultimate result is that the problem will be exacerbated, resulting in a further shrinking of the rates base in the country. It is self-defeating. We are looking at a diminishing return as the years go on. I wonder whether the senior officials in the Department of the Environment, Community and Local Government understand this, because people on the ground and in local government understand it painfully well and are very concerned. They have very strong opinions, particularly about the communications and the relationship between local authority officials and the Valuation Office and how the Valuation Office goes about its business.

Does the Department share those concerns with regard to what is happening with commercial rates? Businesses now face the prospect of paying, in the case of retailers, 50% or 100% more in a business environment that probably has never been this bad since the foundation of the State. The profile of these people is that many have massive levels of personal debt and the footfall is not there. The Department of the Environment, Community and Local Government must have an opinion on what is happening on the ground with regard to this cohort of people who actually fund local authorities around the country.