Robert Troy (Longford-Westmeath, Fianna Fail)

I raise this issue which is very important to ratepayers the length and breadth of the country and not just to those of County Westmeath or County Longford. As recently as a number of weeks ago, a group has formed called, Employers for Affordable Rates. This group is initiating a campaign to lobby the Government to introduce new measures. By the time the House returns in September, the debate will have started at a local level when it comes to the setting of the county council annual rates. There is a misconception that a reduction of 1% to 4% in the county council rates would benefit businesses but this will not benefit small businesses. The only people to benefit will be large multinational companies.

The method of funding for local authorities needs to be examined. The business community requires a more fair and equitable system. We all know that local authorities are obliged by law to levy rates on commercial properties which have been entered in the valuation list by the independent Commissioner of Valuation. At present this system is draconian, inequitable and unfair. The valuation list used for almost all of Ireland is based on the Griffith valuation carried out in the 19th century. Maintaining these lists requires the Valuation Office to determine valuations by reference to the values of comparable properties on the same valuation list. The result is a list of valuations that bears no resemblance to modern valuation levels and contains many anomalies.

The Valuation Office is currently revaluing all commercial properties in Ireland based on the rental value in 2005. We all know that today's economic circumstances are substantially different from those of 2005. The figures are totally out of date and the office has only revalued three rating authorities out of a total of 88. Even if it was revaluing to a realistic figure, how long would it take for it to get through the remaining 85 rating authorities?

We are in an awful situation. Businesses are on the brink and if they are not closing they are laying off staff in order just to pay the rates. Even in 2009 local authorities were only able to collect 80% of the rates. Businesses are reducing staff to pay rates which means more people are going on the live register. For our economic recovery we need more competitive businesses to create jobs. When we return after the summer recess the Government should introduce an amendment to the Valuation Act so that businesses that are struggling can appeal the level of rates they are being charged. At the moment the local authority has no facility to negotiate with the ratepayer so it is all or nothing. If a business goes out of business, it does not need to pay any rates. However, it might just need a helping hand to reduce the rates somewhat in order to stay in business.

I am disappointed the Minister for the Environment, Community and Local Government is not here for this debate. We also need to set up a review group to consider how we fund local authorities. It is unfair that the entire burden is placed on businesses. We need more sustainable businesses with more sustainable jobs and more people paying into the Exchequer and fewer people on the dole. In addition, if the high streets are full of cars even the local authorities are benefiting from car parking charges so it is a win-win situation. This is a very important issue for the business community and everybody benefits when we have job creation.

The Minister for the Environment, Community and Local Government needs to consider how we can amend the present system. I have spoken to a number of businesspeople in my constituency who have suggestions to make. We could charge based on a company's turnover and require the company to submit its VAT returns on a bimonthly basis. People are willing to give their advice and the benefit of their expertise. We know a charge needs to be paid but we need to ensure it is fairer and more equitable.

This is the last Adjournment Debate, so we are entering the history books.

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