Martin Cullen (Waterford, Fianna Fail)

I agree with the Deputy on this point. I introduced a Valuation Bill a number of years ago and I have always believed that rates should be based on current market conditions and real value and income levels and not a notional level based on the size of the property. One could have a very large property with no activity taking place in it. It is open to local authorities to make themselves aware of the real issues for the properties they are dealing with and to work closely with the sector to ensure the rate is fair and reflects current economic value and not a notional square footage value. I am glad to hear some local authorities are doing this and I encourage all of them do so as we come to the end of this year and go into next year. Deputy Upton referred to a reduction of 30% and I do not know how realistic that is. The industry is under pressure and we need flexibility in the public sector to be able to match the timing of real-time changes to current activities.

The Deputy was correct to state that there is overcapacity in the market and some businesses in the tourism sector are more speculative rather than having a tradition of being involved in the sector. Unfortunately, some of these may go by the wayside but that being said we will try to sustain as many as possible of the businesses that exist in the wider tourism and hospitality sector.

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