Seanad debates

Thursday, 11 October 2012

Valuation (Amendment) (No. 2) Bill 2012: Second Stage

 

12:40 pm

Photo of Trevor Ó ClochartaighTrevor Ó Clochartaigh (Sinn Fein) | Oireachtas source

Tá céad fáilte roimh an Aire Stáit. Bille iontach tábhachtach é seo agus tá sé thar a bheith tábhachtach go mbeimis á phlé. Is léir, ó gach taobh an Tí, go bhfuil géarghá dul i ngleic leis an deacracht seo atá ag cur bac le dul chun cinn cúrsaí gnó ar fud an oileáin. Is maith liom go bhfuil deis againn cur leis an díospóireacht seo. There is no doubt there is a need for the Bill and for the measures to modernise the valuation system. The last attempt by a different Government in 2001 was woefully unrealistic and is the reason we are discussing this Bill.

Rates are of great importance in supporting our local democracies and it is that importance that needs to be balanced against the needs of small and medium-sized enterprises in particular, and their capacity to survive and thrive in towns and cities. On the broader question of how rates are levied, perhaps it is time we were more imaginative and moved away from the simple valuation as the means of rating. Another approach may be to use a rating mechanism based on profitability in order that larger enterprises would pay a larger proportion. That is obvious when a large multiple based in a regional town pays rates at the same level as a small family-owned business or shop in the same town or village which is barely keeping people employed. The effect of this would be to give smaller typically indigenous enterprises a better chance of competing with large multinational stores who could afford to contribute more to the community. That may be a question for another day.

This is an important Bill. The valuation process underpins the rates system and must be fair, efficient and transparent. It must also place as little burden as possible on businesses, the State and local authorities. It is only right that measures be proposed to accelerate and modernise the rating process. We share the concerns of the CPSU regarding the outsourcing or contracting out of valuations. While revaluations will not be outsourced there are still many questions about what exactly outsourcing will achieve. It is hard to separate this concept from a broader agenda of cuts and the privatisation of public services. It seems unnecessary and ill-thought out.

There are also questions around the self-assessment proposal. While it could be a worthwhile and sensible proposal, there are questions around how practical it is and if the proposal could lead to more costs for struggling SMEs as they may be compelled to employ professionals to carry out this work. I have an open mind on the issue of the appeals procedure. On the one hand, any attempt to limit the right of appeal should be taken only after discussion. On the other hand a move to simplify and remove bureaucracy is welcome but it is not clear if the proposed change would even achieve that much. Likewise the inclusion of more State and State-related property could be an administrative mountain which simply transfers State funds from one body to another. We will make a call on that issue after today's debate and the information that comes forward. We will listen to the Minister's summing up and decide our final position on what amendments to propose on Committee Stage.

In the broader sense, Sinn Féin is concerned about the creation of growth in the economy. Our jobs plan which was launched today, alludes to the issue. A claim often made in the House is that we do not have any plans and that we practice a type of economics which is in fairytale land. This is not in fairytale land, this is hard copy which I recommend to the Minister for weekend reading.

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