Catherine Murphy (Kildare North, Social Democrats) | Oireachtas source

He valued not only business premises but every shed, house and business throughout the country. He set out on a horse and had it done in 20 years. When I reflect on the technology that is available now and the length of time it has taken to do this with satellite imagery in terms of mapping premises, it is extraordinary that it has taken the length it has. It works to the disadvantage of ratepayers who have the worry of a dramatic increase. In some cases in some sectors we have seen quite a dramatic increase.

One of two speakers spoke about the new profile of shopping in terms of shopping online and the fact that there has been a reduction in regular shopping. That change was remarked on during the Christmas rush, or lack of it, in the capital city. How do we capture that in terms of a fair trading environment, where one component has an overhead that others do not and yet at the same time we are trying to deal with that in an international context? It is an issue that one can sell items cheaper if one does not have the burden of rates, rent and other overheads.

To return to the local government funding aspect of the Bill, one would nearly need to do a PhD to get one's head around it. If we make something very complex, people's eyes will glaze over. The sustainability of the local property tax, if it is to continue, is greatly undermined by virtue of the fact that we have these arbitrary baselines that are based around a needs and resources model that was done around 2000 and that does not count people. There are places in west Dublin such as Ongar and Tyrrelstown that were not counted and have not been counted. They still pay local property tax and still require services. The baseline in Fingal is the lowest in the country. I used it deliberately as an example because it is not my constituency and I cannot be accused of being parochial on this one.

The way local government is funded and where transfers go is unfair. I wonder if one of the reasons the collection rate for commercial rates in Fingal County Council is the highest in the country is that it simply has to have this funding to run its services. I put that out there as a point of consideration.

There are aspects of the Bill which are very welcome, such as the provision allowing rates to be paid in instalments. Rates can be set aside in some scenarios, which vary considerably around the country. If a sporting facility does not have a bar, it is exempt from rates in some places because it is treated as a social asset for the community. Social enterprises with charitable status can get an exemption at the end of the year. The bill is raised but forgone at the end of the year. The position is not the same throughout the country, however, and there are variations in approach. A degree of consistency on that would be helpful.

I looked at the overall spend. Some parts of the country are at a disadvantage in that income from commercial rates is lower than in other areas. Commercial rates can vary considerably depending on the part of the country and the calculation used. It is not just based on floor space but also what the local authority demands in the rate that it strikes. Cities are in a different league because they often provide services to people living in a wider catchment area than the city. When one looks at the amount of money that local authorities have to spend, that shows something entirely different. One could be a sizable net contributor to local property tax, have a high rateable valuation and, at the same time, have less to spend than other areas that benefit from the equalisation fund and have a lower commercial rate. A big piece of work is needed in this area. We have been promised that work be done on the baselines for the local property tax and a new distribution model. It would be useful if the Minister of State could give us an idea of when we might see that because it is important.

Another issue is the small cohort of people who set up a business, which is an unauthorised development for which planning permission has not been granted. Such businesses are not captured in the system, are not valued and do not pay rates. This means the owners benefit from not having gone through the planning system. When such a business is eventually shut down or obtains planning permission, the local authority will have forgone rates that would have been paid otherwise. I have come across a very small number of these cases but they are irritating for those who must compete side by side with them. That issue should be considered. If a business has been valued, it has been acknowledged, and if it is not valued, it is competing unfairly with a neighbouring business which is not fair.

This Bill is welcome and there are some changes in it. It is incremental change but I hope that we get to the point where we will deal with a more fundamental reform. The valuation system has been in place since it was commenced in 1847 and it is time that we went for something more radical.

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