Dáil debates

Tuesday, 12 October 2010

 

Proposed Legislation

8:00 am

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)

I recognise the significant effect new motorways have on businesses that have been bypassed and the refusal of the NRA to allow for signage to promote those businesses. I call on the Government to make amendments to the Valuation Act 2001 to state the bypassing of a property represents a material change of circumstances, as defined in section 3 of the Act. Valuations for rating purposes are made in accordance with the Valuation Act 2001. The Act confers authority to revise valuations on a revision officer only in instances where there has been a material change of circumstances. These are defined in section 3. They encompass circumstances where the structure or neighbouring structure has been rebuilt, or where a structure has for some reason been closed down or damaged by fire, for example. A material change, therefore, must be of a physical nature. The circumstances to which I refer concern a physical change, but not to the building subject to rates. A change in turnover or a decline in the level of business activity would be insufficient, I am told, to warrant the authorisation of a revision of a valuation. As neither of these events is a material change of circumstances as defined in the Act, the Act is too limited. It is a great problem that the Government and institutions of State cannot react to evolving circumstances.

Our road network is unrecognisable by comparison to that of ten years ago. I and most people are delighted with that. The new roads are safer, better for business and are wonderful but we must think of the businesses along the old routes, including a number of businesses on the old N8 in Tipperary, which has been bypassed by the M8, the Portlaoise-Cork road. Business has declined by 90% because of the bypass. Surely this is unfair.

I acknowledge that the new road was completed ahead of schedule and within budget. A wonderful job was done and we all say that is fine. While there was public consultation in the design of the new road, the county council officials and the NRA are totally intransigent in not allowing for any limited signage, although the council came up with a design for the signage. I refer to off-road signage that would not be on the roadway. I see how unfair circumstances are when I go to Cork, Limerick, Portlaoise, the other side of Tipperary and right up to Dublin, where there is signage everywhere. The system is not being implemented fairly.

Rate-paying business people, entrepreneurs, are affected. A landmark hotel, Kilcoran Lodge Hotel, was employing 40 people. Deputy P. J. Sheehan, who has now left the Chamber, always used to stop there. He told me he was only half way to Dublin when he reached Kilcoran. I am sure many of us have been there. The hotel employs many people but cannot survive. It cannot pay the huge rates. There ought to be some recognition of their plight. People from the town of Cahir going to transact business at the hotel end up on the motorway and cannot get off it until they get to Mitchelstown, which is a long distance away. This is very frustrating.

The hotel had a rate review recently. One must apply for a rate review through the national body. It costs €250 but one is adjudicated by the body that set the rate in the first instance. There is no independence or fairness. The rate reviewers say the hotel is as it was, is fine and grand. They are flippant about it but that is not acceptable. We must have an independent review body for everybody. It should not be the body that sets the rates.

There is a wonderful shop and filling station that sells light refreshments for the traveller and others in the village of Skeheenarinky. Some 90% of its business has been wiped away. I have had meetings with council officials and they have no understanding of the sheer loss of business and do not accept that if the local authority takes away one's business, that same local authority should not expect to have rates paid to it. One often heard the saying that one cannot get blood from a stone.

The tools of the trade have been denied to the people to whom I refer. They have a right to make a living, pay their staff, and pay their PRSI and taxes, which they always did diligently. They always provided good employment but their opportunities have been taken from them. They have been blindfolded and handcuffed behind their backs and they are not allowed to transact their business.

There will have to be changes to the Act. I appeal to the Minister, the Department of Finance, the Department of the Environment, Heritage and Local Government and local authorities to examine the review system as it is unfair. It is not fair that those who set the rates review the rates. Surely there should be an independent body to review the rates for premises.

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