Patrick O'Donovan (Limerick, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle's office for selecting this topic and welcome the Minister of State at the Department of Public Expenditure and Reform, Deputy Brian Hayes, to the House. Earlier, there was an indication that the issue might be taken by a representative of the Department of Jobs, Enterprise and Innovation. Someone was trying to disown it, which I found surprising, as there has been a Valuation (Amendment) (No. 2) Bill on the Seanad Order Paper since last August. There has been little movement on it, which is very disappointing.

The Minister of State will be aware, having met local authority members during the week, of the sense of frustration among commercial ratepayers, particularly retailers nationally, about the system of valuation and collection of rates. It is really causing major difficulties. This is the last Victorian form of taxation we have left. During the week, there was a Private Members' Bill before the House seeking the repeal of the local property tax. I support the concept of a local property tax, which is a form of local government revenue generation which is voluntary from the point of view of the valuation of residential houses.

We could learn an awful lot and apply it to the valuation of commercial property. Currently, the only thing the Valuation Office takes into consideration is the building's location, size and letting value. It does not take into account whether it is high up or low down, the commercial reality as it pertains to an individual, or the difficulties a person had in keeping the door open. One of the first hello letters people get when they establish businesses is a demand for rates from the local authority. Also, bad debts are accumulated and carried forward, particularly in the case of commercial premises for sale in commercially attractive areas. One of the primary reasons they cannot be sold is the debt, due to commercial rates from the local authority, associated with premises hanging in the background. In this country we are trying to deal with debt from the point of view of the State and the individual but we avoid addressing debt from the point of view of commercial property and the business community.

Members routinely say the only way we will stimulate growth in the economy to a real and sustainable level is to increase confidence. The retail sector has had its confidence sapped and is in dire need of having the calculation procedures for the collection of commercial rates reformed. Some two and a half years into this Government's term, even though the issue is a cornerstone of the programme for Government in terms of funding local authorities and empowering local authority representatives to get on with their jobs, the legislation is still hanging around and is no closer to the Dáil than it was a year ago. For that reason, I am disappointed.

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