Catherine Murphy (Kildare North, Independent) | Oireachtas source

This is a significant improvement on what was contained in the original Bill, which specified that it would be 100%. The Minister clearly accepted the point, as most of us argued that it was likely to be unworkable because there would be huge variations in letting a premises in Dublin city centre as opposed to somewhere in the midlands or west. We should acknowledge the significant change that has been made. One of the positive aspects is that it is not a one-size-fits-all approach. Individual local authorities will have discretion because there will be wide variations, including within counties and cities. I presume it will work in the same way as the current system whereby some local authorities give a refund to a premises occupied by an entity with charitable status. In fact, no money changes hands. While a bill is issued, the amount is written off at the end of the year. I presume that is the way the system will work.

The Minister mentioned development contributions which will be changed significantly following the setting up of Irish Water. According to the delegates who appeared before the Joint Committee on the Environment, Culture and the Gaeltacht in recent weeks, there will be a rationalisation of development contributions. We have heard that a uniform approach will be taken and that the money will go from local authorities which collect it to Irish Water. A sizeable amount of the development contributions collected will be for water and wastewater. Apart from change of use, the bulk of the development contributions will be paid for new builds. Payments based on change of use will account for a small proportion of the overall amount. Very often development contributions are not even levied where there is a change of use. A case in point would be a premises used as a hairdresser’s where a lot of water is used as opposed to a sweet shop. I do not understand the Minister’s point on the impact of development contributions because we are talking about premises already in place. He referred to rebates being given for unoccupied premises. I do not understand the relationship with development contributions from that point of view.

The Minister has said rates will be levied at county or city level, as opposed to municipal level. He has also said the refund will be decided at municipal level as opposed to local electoral area level. How does that match with the construction of the rate at plenary level, for want of a better term? Will this be decided at municipal level before one strikes a rate? Will it be decided once a year? How does the Minister anticipate that the system will work in practice?

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