Martin Mansergh (Tipperary South, Fianna Fail)

I commend Deputy White for placing on record the valuable work done by the community initiative to which she refers. I hope my reply will be of assistance.

The Valuation Act 2001, which came into effect on 2 May 2002, provides that all buildings used or developed for any purpose including constructions affixed thereto are rateable. Under the Act, the Commissioner of Valuation is independent in the exercise of his duties and the Minister for Finance has no function in decisions in this regard.

I am advised by the Valuation Office that in general all buildings, for whatever purpose, are rateable under the provisions of the Valuation Act 2001. However, there are certain categories of buildings provided for as non-rateable under schedule 4 of the Act. Such buildings would principally include those used for public worship, education and institutions of art and science. There may be instances where enterprises which are operated on a not-for-profit basis are deemed not to be rateable if conducted in a community hall. Within the context of the legislation, a community hall means a hall or similar building, which must not be used primarily for profit or gain and which is occupied for use by the inhabitants of the locality generally for purposes that are recreational or otherwise of a social nature.

I understand that commercial retail activity is carried out at the premises in question and that it is run on a for-profit basis. The position in respect of the valuation of retail shops has not changed under valuation law since 1852. All shops which compete in the marketplace with other similar retail shops are rateable under schedule 3(1)(a) of the Valuation Act 2001. Retail shops which are run by charitable organisations in the usual course — such as Oxfam, Sue Ryder and the Society of St. Vincent de Paul — are all rateable because the charitable content is not in the shop itself.

Given that the Valuation Office adjudged that the restaurant-café run by the Gowran Community Group Limited is a commercial operation, it is considered rateable. The Valuation Act 2001 maintains the long-standing position that commercial facilities are liable for rates. It was not intended that the Valuation Act 2001 would expand or contract the valuation base. Exceptions to this key principle would be quickly followed by demands for similar treatment from providers of other useful services and products, which would be difficult, in equity, to resist. These premises are competing with other commercial premises and the effect of removing any category of rateable property from the valuation base would be to reduce local authority revenues and could also increase the rates burden on other taxpayers. The Valuation Office, in its assessment of these premises, was satisfied that the Gowran Community Group Limited did not meet the criteria for exemption from rates on either charitable or community hall grounds as defined under the Valuation Act.

Any individual ratepayer who has concerns regarding the valuation of his or her property or any part of thereof, including its rateability, may, on payment of the statutory fee of €250, apply to the Commissioner of Valuation for a revision of the valuation. If dissatisfied with the outcome, he or she may appeal to the Commissioner of Valuation in the first instance and subsequently to the independent Valuation Tribunal. There is a further right of appeal to the High Court and ultimately to the Supreme Court on a point of law. In this instance, the occupier did not avail of the statutory consultation and appeal process provided for in the Valuation Act 2001.

As matters stand, the Valuation Office, the local authority or the Minister cannot exempt the building from rates. However the ratepayers, namely the organisation in question, can examine whether the circumstances which led to the original decision have changed to such an extent that, under current legislation, a case for an exemption can be made. It may also do so if it is of the view that the position was in some way misrepresented. There are avenues of recourse but these are not within the control of the Government.

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