Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I move amendment No. 6:

In page 21, between lines 32 and 33, to insert the following:“Amendment of section 49 of the Principal Act

27. Section 49 of the Principal Act is amended by substituting for subsection (1) the following:

“(1) If the value of a relevant property (in subsection (2) referred to as the ‘first-mentioned property’) falls to be determined for the purpose of section 28(4), (or of an appeal from a decision under that section) that determination shall be made by reference to the values, as appearing on the valuation list relating to the same rating authority area as that property is situate in, of other properties comparable to that property and any other relevant evidence concerning the net annual value of the property at the date of application.”.”.

This is a longer textual amendment that would amend section 49 of the principal Act. This deals with what is commonly known in the business as the "tone" of the list. It broadens the issue with respect to the annual value of property and it deals with other properties in the same rating authority. Under this, I will refer to the point we also raised on Committee Stage with regard to the Irish Wind Energy Association. Since Committee Stage I am sure its representatives have contacted the Minister of State's office, the Valuation Office and others. They gave me a presentation earlier today, because time has been very tight, and informed me that wind energy contributes €1.9 million in rates in County Donegal, which is approximately one third of Donegal's rates take. This seems extraordinary, and I would like to know how it gels with the tone of the list relative to other businesses. I am told that wind energy contributes up to €3 million in rates in County Cork. On Committee Stage, we quoted the exact examples of cases in County Limerick in which people's revaluations have resulted in a 280% increase in their rates bills.

I have told the Irish Wind Energy Association that I will ask the Minister to consider delaying the finalisation of the legislation to allow time for these and other relevant matters. The legislation was published in 2012 and there have been delays along the way to allow submissions to be considered. Given that the new valuations and rates bills arrived in Limerick only last year, long after the Bill commenced its passage through the House, people were unaware of the industry and the issue has come up late in the day. I am upfront and have told IWEA that I am not a fan of some of its members and what they have tried to do in the midlands in particular. That said, its point that this is undermining the financial model of the industry is valid. Some of the companies are in receipt of a public service obligation levy which is meant to be a contribution to the industry. However, if the rates increase at the rate they have done in Limerick, the value of the PSO levy will be negated. It makes no sense for the State to give a levy to an industry on the one hand and to take it back through rates. When we discuss a rateable area in a local authority, this is a valid area to raise.

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