Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

I am taking this issue on behalf of the Minister for Public Expenditure and Reform, Deputy Brendan Howlin.

Deputies are aware that the Valuation Office, as part of its revaluation programme, is in the process of updating the valuations of all commercial properties. The revaluation process has been completed and the revaluation is effective for rates purposes in the areas of Fingal, south Dublin and Dún Laoghaire-Rathdown. The revaluation process in Dublin city and the three rating authorities in Waterford is nearing completion and proposed valuation certificates have been issued in these areas. Final valuation certificates for rateable properties in these four local authorities will issue in December 2013.

At this time it is only the revaluation process that is likely to give rise to large increases in rates for stadia, as the local authorities, in order to assist business to the extent that they can, have not increased their annual rate on valuation in recent years. In Dublin city and Waterford the valuations proposed are not yet in the public domain and at this stage they are a matter between the occupier of the property and the commissioner. Before the valuations are published, the occupier can make representations to the commissioner and, after publication, appeals against a valuation can be lodged.

The Valuation Act 2001 provides for the exemption from rates of land that is developed for sport such as playing pitches, golf courses, tennis courts, etc. In accordance with this provision, all playing pitches are exempt from rates and the Act provides that community halls such as sports clubhouses which are not licensed to sell alcohol and the facilities of which are not used primarily for profit or gain are not rateable. This allows for the exemption of most sports club premises throughout the country. However, the Act specifically provides that where a club is licensed to sell alcohol and registered under the Registration of Clubs (Ireland) Act 1904, it is no longer deemed to be a community hall and, therefore, the premises occupied by the club are rateable. The sale of alcohol is a commercial activity and licensed club premises are competing with other licensed premises.

The vast majority of sports facilities throughout the State are rates-free and most of those which are rateable are licensed to sell alcohol under the Registration of Clubs (Ireland) Act 1904. Any reduction in the rates applicable to these premises could distort competition and any proposal to provide a concession for sports stadia would have no basis in current valuation law. If granted through a policy decision, such an act would in all probability be quickly followed by a similar claim by other commercial ratepayers, with the ultimate result being that Exchequer funding to all local authorities would have to be increased by an unsustainable amount to make good the shortfall that would result from such a reduction.

If sports stadia face an increase in rates as a result of the revaluation process, it is because it reflects a relative increase in the value of sports stadia when compared to all other rateable premises. This assessment of relative value is completed by the Valuation commissioner on an independent basis. The revaluation programme will update the values on which rates are based to reflect modern values. As it stands, rates in areas that have not been revalued are based on values and relativities that persisted in 1988 or much earlier. The revaluation programme will ensure rates are levied on a much more equitable basis and any concession that might be considered for any category of property is likely to erode the equity of the system. Any concession to a category of property would have to be passed to the occupiers of all other rateable properties. Local authorities calculate their annual rates on valuations on the basis of the aggregate value on the valuation list. Many sports stadia provide conference and other facilities on the premises on days when the stadium is not being used for a sports event and on these days they are in direct competition with other commercial providers who also pay rates. This would further increase the inequity of a concession.

The value placed on sport and sports events, large and small, cannot be expressed in monetary terms, but sports organisations have and continue to receive financial support from the State. Apart from the ongoing support for sport, some of the large stadia projects such as Croke Park and the Aviva Stadium received substantial grant allocations towards their development totalling in excess of €300 million. I hope that is of some help to the Deputies.

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