Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

Again I would like to request a Clerk's correction to the text of Seanad amendment No. 121 in order to correct a drafting error. In the proposed new item 12 to be inserted into Schedule 3 by Seanad amendment No. 120, the text of column three incorrectly refers to the Local Government Act 1941, and this should be corrected to state "Local Government Act 1946".

Following the restructuring of the local government sector, there will be in each local authority area a single rating authority and a single valuation list, with a single unified annual rate of valuation, ARV. The power to determine the annual rate and valuation will rest with the plenary council. With regard to Seanad amendment No. 14, I am aware that the harmonisation of ARVs in a ten-year period could potentially increase rates in a few cases. For example, a base year adjustment applied as a levy of more than 20 could not be reduced incrementally to zero within ten years without sizable annual increases in rates for rate payers in relevant areas. This amendment allows a local authority in this specific circumstance to apply to the Minister to extend the adjustment period that will apply in the former rating authority area to beyond ten years. It will be a reserve function of a local authority to apply for the extension, and amendment No. 121 provides that this new reserve function be listed in Part 3 of Schedule 3 of the Bill, which sets out the reserve functions of the local authority. These amendments provide that I may make an order that can allow the adjustment period relevant to the area to be extended beyond ten years but no longer than 20 years.

Seanad amendment No. 15 provides that a local authority subject to an order under this provision will be permitted to increase its ARV despite the harmonisation of all areas within the county area not having been completed. However, this is only possible when all other ARVs other than that to which the order applies have been aligned in a county. I stress again that it is not the intention for ARVs to increase and I will continue to stress to local authorities the need for restraint, and where possible, reductions, in setting ARVs to support business and enterprise generally. It is my strong view that the elected members at plenary level should have full control over the setting of the ARV as quickly as possible, which is why I am bringing forward this provision of circumstances where harmonisation in a specified area can extend beyond ten years.

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