Derek Nolan (Galway West, Labour)

This is quite a technical issue but I hope the Minister of State, Deputy Shortall, will bear with me. It concerns rate collection by Galway City Council, of which I was a member, and rebates given to owners of vacant properties. If there are vacant units in Dublin, Cork and Limerick, rates are charged but there is a 50% rebate - in other words, 50% rates are paid on vacant properties. In Galway and Waterford cities, the two other urban councils, a 100% rebate is given. That means there is a discrepancy between Dublin, Cork and Limerick and Galway and Waterford.

The city council in Galway still must provide services for those vacant buildings, maintain the roads and footpaths outside them and spend money on the upkeep of the area surrounding them. The effect on Galway City Council of the 100% rebate is financial in that the city loses out on approximately €1 million in rates revenue each year. As a former member of the city council for two years and as a member of the corporate policy group, €1 million would go a very long way in Galway city. Just this week €800,000 was granted by the Government under the jobs initiatives and it will upgrade eight road junctions and will provide a CCTV control unit, a greenway and a pedestrian way and major traffic movement incentives across the city. That is on a one off basis. Some €1 billion per annum by applying the legislation to Galway and other urban areas would go a long way.

The other benefit would be to other ratepayers in the city who would see their rates bill being shared not only with other businesses which are operating but with empty units. There would be a greater contribution to, and burden sharing of, the rates bill. It would also have the effect of increasing business activity. In Galway, some landlords keep rents high and do not let units because they want to ensure rents stay high. Forcing those empty units to pay rates would encourage the owners to let them at lower rents and it would have an impact on rents in the city in that it would bring them down. It would also bring more people into the city because more people would use the shops or businesses which would open and it would generate economic activity.

It is important to note that ratepayers in Galway city, businesses and the business community, are very much in the favour of the extension of this legislation and would like to see this change as soon as possible.

Galway is one of the gateway cities and is a regional capital but we are subject to different legislation from Cork, Dublin and Limerick. There is no reason that legislation should not be extended to the other two major urban areas, namely, Galway and Waterford. I understand why it might not apply to rural county councils because they have not suffered the same loss in terms of units closing down and they are dependent on the regional cities, the centres of business and activity, to generate business and they are commuter belts for those cities.

Will the Minister bring forward legislation to bring parity to Galway City Council and Waterford County Council? I have seen previous responses from the Department which acknowledge the discrepancy and the problem but state that it is not willing to bring forward legislation to solve the problem. At a time when resources and funding are scarce, if legislation could generate significant income for a city council or for any State or public authority, we should not shy away from introducing it as it would not cost very much. I ask that we resolve the funding issue, the discrepancy and the inactivity in the Galway city area and that legislation on this matter be brought forward as soon as possible.

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