Dáil debates

Thursday, 17 November 2011

3:00 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 8: To ask the Minister for Public Expenditure and Reform further to Parliamentary Questions Nos. 40 and 41 of 5 July 2011, the further progress that has been made regarding the roll out of the revaluation programme to local authorities outside of Dublin; and if he will make a statement on the matter. [34427/11]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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As I explained in response to previous questions, the revaluation programme began in November 2005 in the South Dublin County Council area where it was completed in 2007. It has since been completed in the Fingal County Council area in 2009 and in Dún Laoghaire–Rathdown in 2010. The revaluation of the Dublin City Council area was commenced in May this year, having been postponed for well over a year because of the volatility and conditions in the property market. The Dublin City part of the programme will entail the valuation of approximately 25,000 properties and the new list will be published in 2013.

It is intended to roll out the revaluation programme to other local authority areas shortly. I understand the commissioner intends to make an order for revaluation of the Waterford City, Waterford County and Dungarvan Town Council areas before the end of the year. He has also initiated formal consultations with Limerick City and Limerick County Council on the timing of revaluation in those areas.

The commissioner, in consultation with officials from my Department, has been reviewing various proposals for modernising and streamlining the valuation process, including the appeal provisions, in the interests of both ratepayers and the local authorities. He is conscious that progress has been slow and he is anxious to improve this. For that reason, he has indicated that following this detailed examination he has concluded it may be feasible to introduce a self-assessment approach, accompanied by appropriate controls, and that it might be possible also to outsource some of the work. As well as helping to speed up the national programme, an element of outsourcing, if it proves practicable, would allow comparison of the Valuation Office productivity and costs with those in the private sector.

The enabling provisions to allow for these changes are included in proposals for amending legislation made to me by the commissioner which are being examined in Department. A significant amount of work has already been undertaken and preliminary heads of a Bill have been drafted in conjunction with the Valuation Office and the Attorney General which I hope to bring to Government shortly.

Preparatory work is continuing in drawing up the detailed schemes and, subject to the enactment of the legislation and availability of the necessary resources, I understand that the intention would be to initiate pilot revaluations in two local authority areas. The Valuation Office is also looking at ways of speeding up the capture of data on properties throughout the country in advance of revaluation in particular areas.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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I thank the Minister for his response and welcome the progress that has been made. I wish to impress upon him the urgent need for further progress in this area. Will he comment on an issue that has been brought to my attention? The average rates for hotel rooms in Cork are approximately €3,000 per bedroom, whereas in some parts of Dublin some properties have already been revaluated and the rate is just over €1,000. Can the Minister comment on competitiveness in that area?

Hotels in Cork are finding it difficult to compete in the face of such disparity in rates. Many hotels and other businesses are experiencing this difficulty because valuations are so out of date. Will the Minister take this issue on board as a matter of urgency? Will he seek to push for a resolution as soon as possible, through outsourcing, self-assessment and the updating of existing lists, to which he referred? The revaluation commenced in 2005 but has only been completed in a small area of the country.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I fully appreciate what the Deputy is saying and I fully agree with him. When I first looked at this issue I was dismayed at the slow pace of progress. Part of the problem is that it is difficult to undertake any valuation when property prices are in total flux, as has been the case in recent years. The competitiveness issue the Deputy has highlighted is a significant problem throughout the State. That type of competitive imbalance on the basis of simple geography should not arise.

Upon assuming office, I was concerned at the time envisaged for the completion of the full revaluation of the country which, if we did not make any changes, was scheduled to reach completion as late as 2018. It is for this reason that I am introducing legislation and considering other measures such as self-valuation - with appropriate safeguards - and outsourcing. I hope to be in a position to bring concrete proposals to Government this term.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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The Minister did not mention the State's second city, Cork, and Cork county. Can he give any indication as to when the revaluation might occur there? It is important for the southern region that it be done as soon as possible.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I will revert to the Deputy in regard to when the work is envisaged to be completed in Cork.