Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

I thank the Deputy for raising this matter and I am replying on behalf of the Minister, Deputy Kelly. Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The Commissioner of Valuation has sole responsibility for all valuation matters. The Valuation Act 2001 comes under the remit of my colleague, the Minister for Public Expenditure and Reform.

I am aware the Minister for Public Expenditure and Reform included an amendment in the Valuation (Amendment) Act 2015 to provide for an exemption from rates for properties occupied by parties that provide early childhood care and education on a not-for-profit basis. This extension of the child care and education exemption removed an anomaly that existed whereby those that provided child care and education on a charitable basis were exempt but those that did so on a not-for-profit basis were not.

I understand the Valuation Office is in the process of updating valuation lists to give effect to this extension of the exemption so it will be effective for qualifying providers in 2016. The Valuation Offices interpretation of paragraph 10 of Schedule 4 of the Valuation Acts 2001 to 2015 means that those that only provide the early childhood care and education scheme are also exempt from rates.

The levying and collection of rates are matters for each individual local authority. In accordance with section 29 of the Local Government Act 1946, as amended, local authorities are obliged to make one rate for the whole financial year. This must be levied upon those liable for rates according to the valuation of each premises contained in the latest valuation list transmitted by the Commissioner of Valuation at the time of the adoption of the budget by the council. The annual budget is adopted before the start of each financial year. Rates bills issued to ratepayers in the current year are not subject to amendment by any alteration of valuations within that year. These remain a liability for the business under ratings legislation and it is a matter for the local authority to manage the collection of any outstanding debt.

Commercial rates income makes a significant contribution to the current funding requirements of local authorities. However, local authorities recognise that these are difficult economic times for many businesses, and they work closely with ratepayers experiencing difficulty in the payment of commercial rates. In this regard, local authorities are facilitating the payment of commercial rates by instalments and will work with businesses to put in place flexible payment options that reflect the capacity to pay.

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