Phil Hogan (Carlow-Kilkenny, Fine Gael)

I move amendment No. 2:

To delete all words after "Dáil Éireann" and substitute the following:

— acknowledges that the Government is acutely aware of the pressures on small and medium-sized businesses and the challenging economic environment in which many property and business owners are operating at the present time;

— recognises the very important contribution that commercial rates make to funding local government and meeting the cost of services provided by local authorities, with some 29% of local authority income raised locally from rates;

— accepts that local authorities have exercised restraint in setting commercial rates in recent years as annual rates on valuation have been reduced by an average of 0.6% in 2010 and by a similar level in 2011, reflecting real reductions in commercial rates income;

— welcomes the Government's intention to introduce legislation shortly to amend the Valuation Act 2001, with a view to streamlining the valuation process and speeding up the national revaluation programme in the interests of both the rate payers and the local authorities;

— notes that the proposed legislation will allow the Commissioner of Valuation to pilot the introduction of a new system of self-assessment of valuation and also to outsource valuation work, as appropriate;

— welcomes the revaluation programme currently under way to update commercial valuations which will assist in providing a more equitable distribution of rates across those liable to pay rates;

— further welcomes that, following completion of the revaluation programme, there will be a much closer and uniform relationship between rental values of property and their commercial rates liability and this relationship will, thereafter, be maintained by means of recurring revaluations provided for in the Valuation Act;

— acknowledges that the rates system, as a local tax, is deeply embedded in the local government system: a large body of case law is well established and local authorities and rate payers are, in the main, very familiar with and generally accepting of the operation and practice of the rating system;

— recognises the importance of the valuation system in underpinning a stable source of financing for local government that is not affected unduly by short-term changes in economic circumstances in between periodic revaluations;

— notes that the Government's water pricing policy requires local authorities to recover the cost of providing water services from non-domestic users of these services as required under the EU water framework directive;

— welcomes that the local government efficiency review group has identified significant savings that can be made for the local government sector;

— acknowledges the Government's establishment of an implementation group under an independent chair earlier this year to oversee delivery of the recommendations of the local government efficiency review group;

— recognises the supports provided by local government for enterprises and small businesses, in order to promote entrepreneurship and jobs at local level, and further welcomes the commitment of the Minister for the Environment, Community and Local Government, Deputy Phil Hogan, to support all local authorities to implement best practice in this regard;

— notes the measures already taken by the Minister for the Environment, Community and Local Government in relation to local government reform through the decisions to merge Limerick City and County Councils, the merger of Tipperary North and South County Councils and the establishment of a local government committee to examine the question of a single authority for Waterford city and county, along with his intention to bring forward policy proposals on local government reform early in the new year;

— acknowledges the widening of the base of local government funding through the proposed introduction of a new household charge in accordance with the EU-IMF programme of financial support for Ireland; and

— further welcomes the Minister for the Environment, Community and Local Government's intention to keep all matters relating to commercial rates under continuing review.

I wish to share time with Deputies Nash, Kyne, Maloney and Coffey.

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