Mr. Declan Lavelle:

Consider my comment on the tenant paying the rent and insurance and for repairs and the maintenance of the building. It has more to do with the fact that our definition of net annual value, as defined in the Valuation Act, assumes that the rent is the amount left after the tenant pays these outgoings. If I am told the rent payer is paying €100 per week and that, in addition, the landlord is paying the insurance and rates and maintaining the building, we would say that, under our definition of value, the €100 per week is not the rent. It is a figure less than this and we have to adjust it to reflect these outgoings.

I agree with the Chairman on the reality of the marketplace; however, in terms of our deciding what a value is, it is not gross value that the landlord gets but essentially the net rent. That is our definition of value. Therefore, when we publish our new valuations in places such as Waterford, for example, and Limerick next year, we will actually be publishing the net annual value or net rental value. That is the rental value we are putting on the property.

Vacant properties on streets present a valuation challenge, about which there is no doubt. Sometimes there is an extreme where there is so much vacant property on a street that it actually affects all values on that street. Generally, thus far our experience is that we do obtain rental information and it is a question of analysing it when we get it and making the judgment call.

On the third point to which the Chairman referred which concerns the subsequent occupier, sometimes the clause will lead to a property being vacant. If one examines a number of properties on a street and asks why they are vacant, it may be a factor. We receive additional information from the stamp duty people, etc., but it is much more challenging for valuers in a recession to value property because many market incentives and other factors must be accounted for by the valuers. During the Celtic tiger period leases were much more standard, as were letting agreements. Now we find they are bespoke. However, that is a challenge to our valuers. Ultimately, they must stand back and decide what property would be let for on the market, assuming it is vacant to let and the tenant is paying rent knowing that he or she must insure and maintain the building and pay the rates. That is the statutory definition of value.