Brian Stanley (Laois-Offaly, Sinn Fein)

I agree that any overhaul of the rating system must be central to an overall reform of local government, which is badly needed. A debate on the rating system is long overdue. The State does not have any real local government which devolves power to local communities or empowers them to take responsibility for the local environment and area where local people debate issues of concern and implement solutions through their elected representatives. That is what real, local democracy should be about.

The State has a system of local administration of varying sizes that is dependent on Government handouts and an archaic system of striking rates where unelected city and county managers decide where incinerators are built and when essential services are privatised. Every year in the run-up to the budget, which comes just before Christmas, the debate rages in council chambers across the State. I know from my experience as a councillor that the debate is made very difficult because of the pressure on the one hand from businesses and their lobby groups who demand lower rates and on the other hand from those who elect councillors for services that are needed and must be paid for, which in turn is understandable. Unfortunately, the two main sources of funding for the services are commercial rates and the block grant from central government. The block grant is the equivalent of pocket money from central government. It comes late and long after the budgets have been agreed. I have seen that happen year after year.

Commercial rates need to be implemented on a progressive basis. The current system is fundamentally flawed and is in need of major overhaul. In their current form commercial rates are a blunt tool for raising finance. We need to shift the balance of payment away from smaller businesses to larger ones that are more profitable. Smaller businesses are often the backbone of local economies and they are struggling with rent and rates. We must overhaul the rates system and introduce a new scheme that will take into account the ability of a company or business to pay. Sinn Féin has long argued for that. I put forward the argument as far back as 25 years ago, that the ability to pay must come into play. We propose that it would be done on a progressive basis with the wealthier companies paying their fair share. A new overhauled rates scheme must take into account one's ability to pay. I support the Sinn Féin amendment. Any proposals on rates must be done in the context of radical reform of local government.

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