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

It is a decision made by the council which might decide to change it on a reserved function basis from year to year or every couple of years or it might not decide to change it at all. It is a matter for it to decide. I want to give maximum discretion to the elected members to decide the matter for themselves. It will be done on a local electoral area basis, namely, a county basis. There is a slight difference between the municipal district and local electoral area. That is the basis on which rates will be decided. It could also be done by a combination of local electoral areas. I wish to provide for the maximum discretion in order to cover the issues raised by Deputy Denis Naughten which might be more applicable to his constituency than to Deputy Catherine Murphy’s. There will still be variations under the refund scheme. If one gives discretion to councillors and each local authority can apply the maximum discretion, there will be variations. I hope the rates will be more reflective of local circumstances on the basis that one size does not fit all, as Deputy Catherine Murphy correctly pointed out.

Councillors make decisions on the development contribution scheme. There is provision, for example, for derelict sites, a point made by Deputy Denis Naughten. The rationale behind the scheme was to deal with commercial rates on the basis that a premises might be abandoned because a business might not be able to pay the rent or it could fall on difficult financial times and the site might be empty for some time before a new tenant could take over. There is provision in the development contribution scheme for derelict sites. If a property has not been occupied for a considerable time, it will fall into disrepair. Councillors have discretion to address the issue. The provision could be seen as an incentive, on the one hand, and a disincentive, on the other, through the commercial rates mechanism. The background is that maximum discretion is provided in order to mobilise property and put it into commercial use or give it an enterprise function. Deputy Catherine Murphy should examine the rates and the development contribution scheme in their totality in terms of incentivising properties to be put into use and generate economic activity.

See this speech in context