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

I accept what the Minister of State said in terms of the painstaking nature of the acceleration of the programme. He referred to the equitable basis but the current system is inequitable and I do not see it changing any time soon without greater voluntary and individual input. This should be along the same lines as the local property tax regime, whereby a relationship of trust is built up between the local authority and the individual and that we trust them on the basis of the commercial reality as it pertains to the business, what they can pay and what they should pay. Two different businesses may exist side-by-side on a street. In any town, there is dereliction and vacant properties, which is in part due to the valuation process, the length of time it takes and the archaic Victorian system of compiling rates. We need to examine the length of time valuation is taking and the concept of whether the valuation system is fit for purpose. It was designed under the Griffith system in the middle of the 19th century and has not changed since.

The State has introduced a form of taxation this year, the local property tax, which is based entirely on trust. We need to examine that model with commercial people and businesses. If 30% of properties are valued after four years, it will take another four years before the remainder is valued. In the meantime, retail space all over the country is crippled. The Bill does not take reality into consideration. For many local authorities, the compliance rate in 2009 was 84% and dropped to 76% in 2011. It does not take into consideration people's inability to pay. This must be examined so that we can say we are delivering, like a local property tax, a form of funding for local authorities. I do not see that happening in the current Bill. When the Bill finds its way to the Dáil, I ask that the Government be open to taking suggestions from ISME, the Small Firms Association, individual retailers and Deputies who have been inundated with people telling them about commercial reality and commercial rates.

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