Regina Doherty (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for taking this Topical Issue today. On 16 April, we enacted a very welcome amendment to the Valuation Act which gave partial relief or exemption from commercial rates to all sports clubs which had some commercial activity, be it a small bar or renting out some of their AstroTurfs. We did that because we recognised it was unfair to rate the entire club, which is a voluntary organisation and which is the backbone of probably all our communities, on the basis of it having a small bar or renting out its AstroTurf.

All politics is local so I wish to talk about my local GAA club which, historically, has had a commercial rates bill that is astronomical. It is off the wall and the club has not been able to afford it for the past number of years because the entire complex was rated. Our local council has taken four trustees of the club, who are very elderly men and who are only active in the club in a very recreational way these days, to court. They now have a judgment against them for this very large commercial rates bill and the council is pursuing them.

The reason I raise this with the Minister of State is because he directly manages, controls and directs our councils. I am asking him to intervene in this particular action and ask the council to look retrospectively at the commercial rates owed and, in the spirit in which the Valuation (Amendment) (No.2) Bill was passed on 16 April, to possibly recalculate the historic commercial rates and come to an amenable agreement so that four elderly men in Ratoath do not go to bed at night worrying about whether the courts will come after them for their houses. The GAA club in Ratoath wants to pay what is owed but it only wants to pay what is fair and what it can afford. Will the Minister of State intervene through his Department with local authorities, including Meath County Council, to find an amicable, fair and amenable outcome?

Peter Fitzpatrick (Louth, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In the past months, two very well-known GAA clubs in north County Louth have received rates demands for 2015, one in excess of €16,000 and another in excess of €15,000. Both clubs are in the north of the county and cater for over 1,000 children ranging in ages from six right up to 18 and also include adult members and players. They are voluntary, not-for-profit organisations and rely on the goodwill of the community to stay alive. Each year, the cost of running the clubs is increasing and they rely heavily on fund-raising efforts to remain open for the members and the community. I have met representatives from both clubs and other sporting organisations in County Louth and it is clear that the additional expense of the rates bill will have a very detrimental effect on the clubs. They face very stiff competition in their fund-raising efforts from other very worthwhile organisations.

I have spoken to representatives from Louth County Council who have explained that from their point of view, there is no provision in law for the waiving of rates and have told me that "rates apply to all commercial outlets which include bars". The law, as it stands, states that sports club facilities are normally exempt from rates but where the club has a bar, all of its premises are valued for rates, including buildings which are purely for sporting purposes. I welcome the fact that the Valuation (Amendment) (No. 2) Bill has completed its passage through the both Houses of the Oireachtas in the past week and will allow commercial and community areas within these clubs to be separated for rates purposes. Will the Minister of State and his officials actively engage with Louth County Council and the Valuation Office in respect of the commercial rates bill already issued to both clubs with a view to re-evaluating the outstanding bills on the new rateable basis?

Paudie Coffey (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Deputies for raising this issue. I understand and appreciate the concerns they have expressed but I must clarify some aspects of the issue for them. As they are aware, 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 there has in the past been discussion at a local level regarding aspects of the rateability of some sports clubs and child care providers. The Deputies are correct in saying that this has been a matter of debate in this House in recent times.

In this regard, as stated by the Deputies, the Minister for Public Expenditure and Reform included in the Valuation (Amendment) (No. 2) Bill 2012 an amendment to provide for changes to the valuation of sports clubs and child care providers. This Bill was passed by both Houses of the Oireachtas on 16 April this year and now needs to be signed by the President.

The Minister for Public Expenditure and Reform has ministerial responsibility for this Bill. The levying and collection of rates are matters for individual local authorities. 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.

Contingent on the enactment of the Valuation (Amendment) (No. 2) Bill 2012 in due course, the valuations of affected sports clubs and child care providers will require the Commissioner of Valuation to amend the valuation lists to which rates are applied for the future. I understand that the Commissioner will commence this process upon the enactment of the Bill. In respect of rates that have been levied on these businesses for the current and previous years, 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.

As the Deputies will be aware, the local authority is the rating authority and each authority is responsible for the collection of rates in their jurisdiction. The Minister and the departmental officials cannot, therefore, become directly involved in specific rates collection issues.

Regina Doherty (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Everything the Minister of State said is true, including that the statutory obligation to collect levies on property used for commercial purposes is the council's. Why then is the council still seeking to collect rates in respect of the changing rooms, upstairs playing hall and gym of the sports club in my area, none of which have a commercial aspect? They are run on a voluntary basis and funded by way of fund-raising events in the village.

I appreciate all of the palaver with regard to the legalities around this issue, but I take this opportunity to inform the Minister of State that the day the sheriff arrives to remove items from the four elderly men who are trustees of my local club, I will be standing in front of them to prevent property from being taken away. There is no goodwill in this regard. The Department needs to look at this from the point of view the many organisations that are the backbone of our communities and are volunteering their time, services and effort to the provision of sports and recreational activities and the fund-raising events required in this regard. These people are being told, leaving aside the services they have provided for the past year, that they will continue to be pursued for commercial rates, which, as has already been acknowledged through the changes made to the legislation, were wrong.

I call on the Minister to intervene in this matter with the local authorities involved and ask that in the spirit of goodwill they renegotiate the outstanding rates on the new commercial rates basis.

Peter Fitzpatrick (Louth, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for his response. I urge him to bear in mind that, as in the case of many other GAA clubs in this country, both of these clubs are run on a voluntary basis. It is vital that a suitable arrangement is arrived at by all the parties involved.

I am a lifelong member of the GAA and I understand fully the commitment and effort required of thousands of GAA members across the country. In the majority of cases, the commercial profit derived from club bars is very small. These bars are generally only open once a week and in many cases are losing money. The clubs appreciate that they must pay rates, but they cannot afford the current very high rates.

I again urge the Minister of State and officials of his Department to work closely with Louth County Council and the Valuation Office to ensure a satisfactory solution to this issue.

Paudie Coffey (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I understand the Deputies' concerns in regard to this particular issue. I am the chairperson of my local GAA club, and as such, I do understand their concerns. As stated, the law has been changed to address their concerns going forward. The Valuation (Amendment) (No. 2) Bill 2012 contains provisions to alter the basis of valuations of certain sports clubs and child care providers into the future. I welcome the granting of a specific exemption to community sports facilities, as it resolves this long-standing anomaly, and the extension of the exemption to not-for-profit child care providers, as this will ensure consistency of approach with regard to the child care sector, while respecting the principle that those who operate with the intention of making a profit remain rateable. It is important to make that point.

Nevertheless, in accordance with current rating law, these exemptions can only be reflected in ratepayers' bills from 2016 at the earliest. In terms of outstanding rates liabilities owed by any businesses that may become exempt or partially exempt in the future, management of the collection of rates due is a matter solely for the local authority as the statutory body. I would expect, however, that given the changes in the law, local authorities would proactively engage with stakeholders affected to try to resolve any outstanding matters in keeping with the principle of the laws now being developed.