John Deasy (Waterford, Fine Gael) | Oireachtas source

I tabled this matter due to the level of uncertainty regarding the setting of commercial rates following the announcement of the abolition of town councils and the amalgamation of certain local authorities. I started by submitting a parliamentary question, in which I asked the Department to list all of the country's annual rates on valuations, ARVs. There are extraordinary differences between some commercial rate levels, even within the same county. For example, Donegal County Council's ARV is almost €70 whereas Buncrana Town Council's is approximately €44. Can businesses in Buncrana expect their commercial rate levels to increase to county council levels? The same situation obtains in my home town, in that Dungarvan has an ARV of €60 whereas Waterford County Council has an ARV of €70. The administration in Dungarvan is well-run and efficient and has been able to keep commercial rates at a reasonable level for many years. Businesses in my home town are asking me whether they will be penalised for that efficiency.

I have also raised this matter at the Committee of Public Accounts. The response I received was that the rates would be harmonised at the lower level where possible. That is fair enough, but we need clarity. The Minister has indicated his intention to move towards the lower rate.

Businesses are generally facing trouble, in what I would call a triple whammy. There may be an increase in commercial rates due to local government reform; many businesses pay commercial variable rates, which seemingly increase every few months and are reaching dangerous levels; and the Valuation Office is revaluing businesses and commercial premises. It has done so in Dublin and Limerick and is now doing so in Waterford. Many businesses will have different valuation rates applied to their properties. If they have extended, some will find themselves facing larger bills.

Before the last election, Fine Gael's policy was not to increase commercial rates. We also instructed councillors on various authorities to freeze commercial rates in order to restore competitiveness and help businesses through the recession. We must be conscious of our policy and acknowledge what has happened since, that is, the worsening of the recession.

Generally speaking, it comes down to, for example, the cost to a business in a town council area such as Dungarvan. If the businesses lose the town council, they will therefore lose representation. Given that they are losing, it would not be proper to ask them to pay anything extra. The slogan in America in the 1750s and 1760s was “No taxation without representation”. We must be careful. If we are taking representation from people, we cannot ask them for more money for the privilege. That might be a mistake. I hope the Minister will provide clarity on the issue. My question to him is simple. Will businesses in town council areas such as Dungarvan or businesses in local authority areas that are to be amalgamated see an increase in their commercial rates due to local government reform?

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