Áine Collins (Cork North West, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on this Bill which proposes to amend the existing valuation legislation. There is general agreement that the current system is cumbersome, outdated and inconsistent. Rural Deputies in this House are well aware of the huge decline that has taken place in business, in particular in rural towns and rural areas. Businesses have closed and there are vacant premises in all the towns and villages. While I acknowledge that rates are not the only reason for this, they are a contributing factor. With the older system of county and town councils, it was often the case that rates were higher in small towns and villages than in towns that had their own councils. The abolition of town councils would eventually solve this problem as equalisation would accrue over a seven-year period. However, this process could be too late for many of our smaller towns and villages as, without immediate and remedial action, it is doubtful there will be any rateable properties left in rural areas. Many villages are already without valuable post offices, shops, pubs, cafes etc. Section 11 of this Bill will provide a way of adjusting valuations in these instances which may help some of these businesses to survive. Generally the old system did not take account of the profitability of a business, nor did it allow for revaluation except when a new planning permission was sought.

Section 6 provides an amendment which allows the commissioner the option of appointing a person to carry out a valuation on behalf of the Valuation Office. Hopefully, this measure, combined with a self-assessment measure, will hurry up the process and lead to more realistic ways of achieving a just and transparent rate. This will allow new businesses to evaluate more accurately the cost base for rates in advance. This is important as many retail units are being divided into smaller, more manageable units and, under the current system, it is impossible to calculate properly what the rates would be.

This Bill comes from the Seanad and, judging from the transcripts, there was a very successful interaction between Members of the Seanad and the Minister of State, Deputy Harris. I would like in particular to compliment the Seanad and the Minister of State on their handling of amendment No. 24. It acknowledges that sporting or community organisations can rent out their facilities such as all-weather pitches or gyms to local groups without having to pay rates, but like other commercial enterprises any section such a pub, restaurant or catering facility within these premises is not exempt from rates.

Child care facilities were considered in detail by the Minister of State and the Seanad and an amendment in this respect was accepted. From now on, a charitable and not-for-profit organisation will be exempt from rates. While I believe that in the future we will have to look at exempting private, for-profit child care facilities, this amendment will now bring welcome relief to approximately 1,000 not-for-profit child care providers.

I welcome the Minister of State's constructive contribution to this debate and the amendments he accepted in the Seanad. I am confident that some future improvements can be made to this Bill as it goes through the various Stages in this House. In the meantime, I commend the Bill, together with the amendments made to it in the Seanad, to this House.

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