Dick Roche (Wicklow, Fianna Fail)

This is a technical amendment which provides for the commencement of section 1, which is necessary for section 5 of the Bill, as passed by the Seanad, to come into effect. Section 5 provides that newly erected properties will be liable to pay a levy to local authorities from the date the properties are entered into. This ends the existing rating holiday whereby it is possible for a new business to take advantage of the lag between the occupation of a business premises and the commencement of business, at which point the premises is valued and rated. The cost of this rating holiday is carried by all other businesses in the area which pay rates. This is not equitable.

From the time a premises is built, it should be entered on the valuation list and rate contributions should be payable immediately. It is only fair and reasonable to other businesses that it should be so. The rating holiday that existed because of the inflexibility in the current arrangements increases the burden on existing businesses. A situation could arise, for example, where small business must pay more while a large firm that is commencing operations pays nothing for a period. It is only reasonable that as soon as a property is completed and the valuation process undertaken, the contribution of that business to local funding should commence. Reference is made to a levy in the legislation because it cannot be called a rate for technical reasons.