John Perry (Sligo-North Leitrim, Fine Gael)

The setting of commercial rates is a matter for local authorities which come under the remit of the Minister for the Environment, Community and Local Government. Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes, in accordance with the details entered into the valuation lists prepared by the independent Commissioner of Valuation. The levying and collection of rates are matters for each individual local authority. The annual rate on valuation, ARV, is applied to the valuation of each property to obtain the amount payable in rates. The ARV is decided by the elected members of each local authority in the annual budget, and its determination is a reserved function of the local authority. The issue of changing the basis on which rates are charged, from a flat rate to a progressive rate, would be a policy matter for the Minister for the Environment, Community and Local Government, in consultation with the local authorities and the Minister for Finance.

While we have not commissioned any reports into commercial rates charges, the Government is aware that the cost of commercial rates is often cited as an area of concern by business interests. Preliminary results from a review carried out by the Department of the Environment, Community and Local Government on commercial rates for 2011 show that 32 of 88 local authorities have decreased their annual rate on valuation this year, while 53 kept the same rate as 2010. This follows a similar pattern to last year, when 31 local authorities reduced their ARV and 55 maintained the same ARV as 2009.

The Minister, Deputy Bruton, has had detailed discussions with the Minister for the Environment, Community and Local Government on how we can work together to maximise opportunity for local business development and to keep all costs which impact on business as low as possible. This work will continue and will include the exploration of options for further reducing local authority charges to business, which the Minister is keen to develop.

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