John O'Mahony (Mayo, Fine Gael)
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I thank the Ceann Comhairle for selecting this issue which relates to the significant hike in rates levied on major sports stadia in Dublin and which will have major knock-on effects if replicated throughout the country in sports and voluntary organisations. In the past few weeks the two major stadia in Dublin - the Aviva Stadium and Croke Park - have been given a rates bill that shows a fivefold increase on the figure for last year. The bill for the Aviva Stadium has gone from €437,000 to €2.36 million, while the bill for Croke Park has gone from €528,000 to €2.112 million. For the three sports involved - GAA, rugby and soccer - the increase will amount to €3.5 million which accounts for well over 50% of the funding the organisations received from the Irish Sports Council to deliver various coaching programmes for members. The organisations provide massive business and economic benefits for our capital city and cities, towns and villages. If this is happening in the case of national stadia, there will surely be implications for sports and community organisations throughout the country. As a result of the economic position, the Government has had to reduce the investment in sport for a number of years. All of these organisations have volunteers who provide not just an economic but also a social benefit for communities, involving the young and not so young. They promote positive sports activities. One might argue that these organisations can well afford to do this, but in the case of the GAA, for example, 86% of funding into Croke Park is disseminated through the units at grassroots level. These stadia are of large economic benefit to the State via sports tourism and events such as the Rugby World Cup and it is hoped the likes of the European soccer championships could bring millions of euro into the country. We are, therefore, shooting ourselves in the foot with these massive rates bills.

Anthony Lawlor (Kildare North, Fine Gael)
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How much time do I have?

Peter Mathews (Dublin South, Independent)
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Strictly speaking, the Deputy has one minute, but I will be a little lenient.

Anthony Lawlor (Kildare North, Fine Gael)
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The Acting Chairman failed to let us know at the start how much time we had.

Peter Mathews (Dublin South, Independent)
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The clocks are there for everybody to see. I am not supposed to interrupt Deputies.

Anthony Lawlor (Kildare North, Fine Gael)
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I reiterate the comments made by my colleague, Deputy John O'Mahony. There will be almost €4 million less to be made available to clubs and communities throughout the country, with the money going to Dublin City Council instead because of the change in valuation of both premises. There is a fear that there will be a revaluation not only of the two stadia we are discussing but also of all clubs and facilities throughout the country. In my county of Kildare there are three race tracks and it seems that all of these facilities at the Curragh, Naas and Punchestown will see an increase in rates which will have a detrimental effect on them. Will Dublin City Council give the extra €4 million to my local GAA or soccer club in Kill or rugby club in Naas? I cannot see that happening. We need to reconsider the Valuation Act 2001 and ensure we obtain a derogation not only for the two main stadia but also for all the stadia and sports organisations throughout the country. They are creating an atmosphere for young people, in particular, to participate in sport and prevent obesity. I appeal to the Minister to contact the Valuation Office and examine the legislation to see if there is a possibility of providing for a derogation for the rates paid by these stadia which also support clubs and organisations throughout the country. We should also consider if we can extend that derogation to sports and community organisations that have a beneficial effect on the nation.

Peter Mathews (Dublin South, Independent)
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I have been generous to the Deputy who had his full two minutes and even a little more.

Jan O'Sullivan (Limerick City, Labour)
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I am taking this issue on behalf of the Minister for Public Expenditure and Reform, Deputy Brendan Howlin.

Deputies are aware that the Valuation Office, as part of its revaluation programme, is in the process of updating the valuations of all commercial properties. The revaluation process has been completed and the revaluation is effective for rates purposes in the areas of Fingal, south Dublin and Dún Laoghaire-Rathdown. The revaluation process in Dublin city and the three rating authorities in Waterford is nearing completion and proposed valuation certificates have been issued in these areas. Final valuation certificates for rateable properties in these four local authorities will issue in December 2013.

At this time it is only the revaluation process that is likely to give rise to large increases in rates for stadia, as the local authorities, in order to assist business to the extent that they can, have not increased their annual rate on valuation in recent years. In Dublin city and Waterford the valuations proposed are not yet in the public domain and at this stage they are a matter between the occupier of the property and the commissioner. Before the valuations are published, the occupier can make representations to the commissioner and, after publication, appeals against a valuation can be lodged.

The Valuation Act 2001 provides for the exemption from rates of land that is developed for sport such as playing pitches, golf courses, tennis courts, etc. In accordance with this provision, all playing pitches are exempt from rates and the Act provides that community halls such as sports clubhouses which are not licensed to sell alcohol and the facilities of which are not used primarily for profit or gain are not rateable. This allows for the exemption of most sports club premises throughout the country. However, the Act specifically provides that where a club is licensed to sell alcohol and registered under the Registration of Clubs (Ireland) Act 1904, it is no longer deemed to be a community hall and, therefore, the premises occupied by the club are rateable. The sale of alcohol is a commercial activity and licensed club premises are competing with other licensed premises.

The vast majority of sports facilities throughout the State are rates-free and most of those which are rateable are licensed to sell alcohol under the Registration of Clubs (Ireland) Act 1904. Any reduction in the rates applicable to these premises could distort competition and any proposal to provide a concession for sports stadia would have no basis in current valuation law. If granted through a policy decision, such an act would in all probability be quickly followed by a similar claim by other commercial ratepayers, with the ultimate result being that Exchequer funding to all local authorities would have to be increased by an unsustainable amount to make good the shortfall that would result from such a reduction.

If sports stadia face an increase in rates as a result of the revaluation process, it is because it reflects a relative increase in the value of sports stadia when compared to all other rateable premises. This assessment of relative value is completed by the Valuation commissioner on an independent basis. The revaluation programme will update the values on which rates are based to reflect modern values. As it stands, rates in areas that have not been revalued are based on values and relativities that persisted in 1988 or much earlier. The revaluation programme will ensure rates are levied on a much more equitable basis and any concession that might be considered for any category of property is likely to erode the equity of the system. Any concession to a category of property would have to be passed to the occupiers of all other rateable properties. Local authorities calculate their annual rates on valuations on the basis of the aggregate value on the valuation list. Many sports stadia provide conference and other facilities on the premises on days when the stadium is not being used for a sports event and on these days they are in direct competition with other commercial providers who also pay rates. This would further increase the inequity of a concession.

The value placed on sport and sports events, large and small, cannot be expressed in monetary terms, but sports organisations have and continue to receive financial support from the State. Apart from the ongoing support for sport, some of the large stadia projects such as Croke Park and the Aviva Stadium received substantial grant allocations towards their development totalling in excess of €300 million. I hope that is of some help to the Deputies.

John O'Mahony (Mayo, Fine Gael)
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I will stick to the minute this time. The Minister of State makes the points well. Everybody understands there will be an increase in rates but the issue here is of a fivefold increase. This comes under the various remits of the Departments of Public Expenditure and Reform, Environment, Heritage and Local Government and Transport, Tourism and Sport. Have any discussions taken place? The danger is that the matter will fall between the remits of the various Ministers and nothing will be decided.

I refer to competition and distorting the market. If Ireland is awarded the hosting of the rugby world cup there will not be a bed in a hotel or a guest house within 40 km of Dublin city. That is not distorting competition or income but is helping the areas the Minister of State mentioned. We need to get real about the benefits if we are choking them through the rates. An increase is acceptable but not the one proposed.

Anthony Lawlor (Kildare North, Fine Gael)
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To reiterate, the knock-on effect of that measure hits clubs and communities all the way down because of the money generated by Croke Park and Aviva stadiums and how they transfer the money down the line to clubs, through grants and the coaching facilities made available. That could be cut off if there is a fivefold increase in the rates bill. I wonder what publicans and hoteliers would say if the GAA decided to move the All-Ireland final to Cork. I would say every publican and hotelier in Dublin would be up in arms and knocking on the Minister of State's doors if the event were moved. It brings enormous benefits. The community where I live and those where other Deputies live benefit, and so do publicans and hoteliers within the area where such events take place. The worry is that there would be a knock-on effect for other facilities throughout the country if those concerned are allowed to get away with this measure.

Jan O'Sullivan (Limerick City, Labour)
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We all understand the concern, particularly in respect to those large sporting bodies and the value they bring to our country. I must reiterate that the Commission on Valuation is an independent body, in accordance with the statute and it does not confer on the Minister any function in this regard. I again make the point that before valuations are published the occupier can make representations to the commissioner. There is only the proposed valuation at present. After publication, the occupier can appeal against the valuation listed - that process is in place.

I appreciate the Deputies' suggestion that the relevant Ministers should discuss the issue and I am sure there will be no difficulty in that regard. As it stands, however, the legislation indicates that the valuation process is entirely independent of any Minister. I will convey the concerns of the Deputies to the Minister, Deputy Howlin.