Willie Penrose (Longford-Westmeath, Labour)

As I stated in my introductory remarks, the Government is acutely aware of the pressures on small and medium-sized businesses at the present time. The Minister of State, Deputy Perry, is dealing with various competitiveness and cost issues that will certainly incorporate some of things raised by Deputy Daly. The Deputy's point about vacant properties is well made.

Local authorities have taken a number of initiatives to promote and support enterprise, economic development and employment generally, including in particular the establishment of business support units or equivalent arrangements in each county and city council. Local authority cost bases have been reduced and continue to be rigorously examined rigorously to maximise efficiencies which, in turn, impact positively on business. We will continue to impress upon local authorities the need to continue measures to enhance efficiency with a view to minimising rates and charges for business.

As I outlined previously, the Commissioner of Valuation is conducting a programme of revaluation of all commercial and industrial properties throughout the State. Following completion of the revaluation programme, there will be a much closer and uniform relationship between the rental values of property and their commercial rates liability. This relationship will thereafter be maintained by means of recurring revaluations provided for in the Valuation Act. This will lead to more consistent and up-to-date valuations for rating purposes and will assist in making the rating system fairer and more equitable for ratepayers.

I recognise that these are difficult economic times for many businesses. While it is not my intention to reform the commercial rates system at this time, I will continue to keep the approach to rates by local authorities under active review. I remain determined that every avenue will be pursued to optimise efficiency and curtail costs in the local government sector.

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