Barry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

Yes, it is about the commercial rate which is about funding local authorities. This Government promised that the funding of local authorities would be most transparent by virtue of the property tax being available to local people who pay it, and the services they expect. However, €600 million of it has already been taken for Irish Water and 20% is being taken for the State, but not for the provision of local services. This highlights the folly of the process and the haphazard manner in which it is being managed. We can now see the duplication that exists in Irish Water and in local authorities for the provision of water services. I want to hear some comment from the Minister in this regard, given that the questions I have tabled are not being answered by his Department.

On foot of the debate that has ensued since the publication of this Bill, will the Minister acknowledge its flaws? Forbes magazine says that Ireland is a great place to do business and we acknowledge that for many multinationals it is so. We also acknowledge the work undertaken by the IDA and Enterprise Ireland, and the strides that have been made in their areas of responsibility. It should be acknowledged, however, that this country is not a great place for small retailers to do business in town centres. Commercial rents have come down by up to 70%, while commercial rates have declined by no more than 5%. If that is the case, how can Ireland be perceived as the greatest country in which to transact business?

I know the Minister will say that there is a responsibility on the part of the Minister for Public Expenditure and Reform, Deputy Howlin, in this area. However, it all ties in to both Ministers' ability to provide relevant and proper funding for local authorities to carry out their functions, as well as assisting local businesses in town centres which are dilapidated due to the Government's ineffectiveness in tackling this issue. Will the Minister acknowledge, as Deputy Deasy said earlier, that there has to be a complete overhaul of the commercial rates system, including the way rates are evaluated and collected? In the Internet age, the current archaic system disregards the turnover of any particular business. In addition, there is no regard for a business's alignment to commercial rent or its profitability. Neither is there any regard to the lack of surcharge on out-of-town-centre developments, as is the case in the North of Ireland which has a 15% rate. Such a rate here would allow funding for local authorities to make a difference in towns which are facing ruin.

Prior to the last general election, the Minister and his colleagues gave a commitment on upward-only rent reviews. Now, however, the legal opinion tells them that it cannot be done, despite the fact that it was the same legal opinion that advised either government party prior to the election.

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