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

As Members are aware, rates are a stable source of financing for local government and make an important contribution for the provision of local services. I have been concerned with an aspect of rating legislation that in my view gives rise to an unfair burden on new occupiers of rateable property, be they companies that wish to expand, relocate or start up. The subsequent occupier provisions contained in the Poor Relief (Ireland) Acts 1838 and 1849 determine that occupiers can held liable for up to two years' worth of unpaid commercial rates of the previous occupier.

I am taking the opportunity in amendment No. 111 to repeal those provisions and eliminate this financial burden for new occupiers to ensure that any possible barriers to enterprise development are removed. Removing this liability offers the possibility that property that may otherwise have remained vacant and unoccupied can now be re-let, thus improving opportunities in the property market and reducing the incidence of vacant commercial properties. The amendments to this effect are set out in Part 4 of Schedule 2.

At present, there is no requirement for property owners to notify the local authority of a change in property ownership or when a new tenant takes up occupation of the premises. This can create a difficulty for local authorities in establishing who should be liable for commercial rates and often can lead to costly legal cases and an additional burden on staff resources. Short-term lettings also contribute to the challenge with both issues, resulting in a loss of income to the authority, which is passed on indirectly to other ratepayers in the form of higher local authority charges. It is in this context that I am taking the opportunity in amendment No. 17 to introduce a new duty to inform the local authority of the transfer of rateable property, be it a change in ownership or tenancy, in order that the local authority is in a position to ensure liability can be established as soon as it falls due. The amendment details the nature of these requirements and the penalty for non-compliance. Subsection 2(a) places an obligation on property owners to notify the local authority of a change in interest within two weeks of the transfer. This includes a transfer of ownership or tenancy where the person to whom the interest transfers will become liable for rates. This therefore applies in circumstances where the new owner takes up occupation of the premises or a new tenant is moving in. It does not, therefore, apply where ownership of the property is changing and there is no changing occupancy, that is, the change in ownership does not affect the existing tenant.

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