John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

Indeed. I thank the Ceann Comhairle.

Deputy O'Connell raises a very topical issue, if you will pardon the pun. The Commissioner of Valuation is independent and the setting of valuations is the responsibility of that officeholder. It is the same categorisation as the Revenue Commissioners with regard to independence from Government. The Valuation Office is currently engaged in a national revaluation programme under the provisions of the Valuation Acts 2001 to 2015. A revaluation of all rateable property within a rating authority area reflects changes in value due to economic factors such as business turnover, differential movements in property values or other external factors and changes in the local business environment.

Under the current phase of the revaluation programme, 32,000 proposed valuation certificates, PVCs, were issued on 15 March 2019 to ratepayers in the Cavan, Fingal, Louth, Meath, Monaghan, Tipperary, Wexford and Wicklow rating authority areas. The Valuation Office held 50 walk-in clinics across the eight local authority areas. On 29 March 2019, the Valuation Office issued a further 3,500 certificates mainly relating to licensed premises, hotels, service stations and nursing homes. In advance of that issue, the Valuation Office provided specimen PVC documents to various bodies, including the Irish Petrol Retailers Association and offered to provide briefing sessions to its members, which are now under way.

During a revaluation, such as is currently taking place, the Valuation Office analyses the relevant market rental transactions for all rateable properties, including service stations, in accordance with: the legislation; best practice internationally as set out in published practice guidance notes; well-established valuation principles; and case law arising from the independent valuation tribunal and the higher courts.

The Valuation Office is satisfied that the valuation approach adopted in relation to service stations is reflective of open market rents paid by service station operators for that class of property and is compatible with the statutory requirements of Part 5 of the Valuation Act.

The levying and collection of rates are matters for each individual local authority. The annual rate on valuation, ARV, is decided by the elected local authority members in the annual budget, which is a reserved function. Rates income makes an important contribution to local businesses and communities, and it meets, for example, the cost of roads, public lighting, development and public realms in villages, towns and cities across the State. I believe that almost €1.5 billion is collected annually in commercial rates.

Having up-to-date and consistent valuations, reflecting current market conditions, is critical to ensure that the levying of commercial rates is fair, equitable and consistent across all economic sectors and different parts of the country.

The process of revaluation has been ongoing since the early part of this century. I am not sure how it was arrived at, which was the specific question asked by Deputy O'Connell. It is hoped - and this is where the solutions come in as referred to by the Ceann Comhairle - to have a valuations Bill before the Oireachtas before the summer recess. This would deal with specific issues around the areas currently being revalued.

I am acutely aware of the importance of service stations, especially in rural villages where they may be the only commercial premises in some areas, as the Deputy has correctly pointed out. This Bill may provide us with an opportunity. The Valuation Office is given its instructions under the legislation, which we approve, but we have the responsibility from time to time of looking at that.

The Deputy referred to the service station sector, which is a very low-margin business, and to the significance each of those commercial business has in those towns and villages. I believe there is a strong argument for looking at that again. I hope we will be able to do that over the next few months.

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