Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I agree with Senator Barrett about the reorganisation of local government. I agree with his opinion that it is top heavy with managers with too few cognitive staff undertaking specific work. Wearing my public sector reform hat, I assure the Senator that the Minister, Deputy Phil Hogan, will present radical proposals over the next few weeks which will examine the question of amalgamation, how local authorities can be streamlined and how better procurement systems can be implemented. I agree with the Senator that a root and branch reform of local government is required in order to achieve savings. The piece of work to which he referred is part and parcel of that.

This Bill is an attempt to do things differently by including provisions for self-assessment and external service delivery. In both these cases, it is proposed to set up pilot programmes and these can be discussed on Committee Stage. This is evidence of the Government's intention to take a different approach to the delivery of this key aspect of government. I am confident that the pilot projects which are provided for in this legislation will help in implementing self-assessment and external delivery.

The purpose of the Bill is to introduce a rateable valuation system that is clear, equitable and uniform in its application. I note that all speakers have referred to the inequity and lack of uniformity in place up to now. The Bill will enable a national standard application which will provide certainty. I assure the House that the Government is cognisant of the very difficult business climate for businesses and shop owners in all parts of the country. Members spoke about the very difficult trading environment in the domestic economy. The Government has reduced the rate of VAT in the hospitality sector from 13% to 9%, a decision which was opposed by the Opposition. We have introduced a PRSI holiday for employers taking on additional staff. A micro-loan facility is in place and this will be followed by a partial loan guarantee system. The Government has a jobs plan which is focused on building up the capacity of the small and medium enterprises sector. We must ensure that additional burdens are not imposed on businesses of any size that are creating employment and keeping the domestic economy alive. This Bill will help by providing a clear, uniform assessment for the whole country which has not been in place heretofore.

Some speakers have argued for exemptions in areas such as child care facilities. The difficulty is that if exemptions are granted then the general financial hole becomes bigger and it will fall to existing ratepayers and the local authorities to fill the gap. Business is business. If a business is surviving, then it must pay its rates. Senators Sheahan and Landy questioned whether it was fair that those exemptions should be in place in cases such as inability to pay or child care facilities when other businesses are surviving and paying the full amount. We need to tease out this issue on Committee Stage. I reiterate that we will consider all serious and well thought out amendments. I do not suggest for a moment that any Member would ever put forward an amendment that was not serious or well thought out. This is a once in ten year opportunity to produce a satisfactory Bill and we hope for the co-operation of colleagues in doing so.

Senator Leyden raised the matter of rolling evaluation. The intention is to speed up the first national re-evaluation.

At the moment we are up to approximately one third, if one includes all of the areas to which I referred in my opening speech, but we are not happy about that. In the first instance we will get a total valuation and then there will be a rolling revaluation every five to ten years after that to take account of changes in values in the interim.

On the question of self-assessment, the Valuation Office will be able to give a great deal of direction and help to ratepayers, who should not need professional help. We will pilot this and can have a discussion on Committee Stage on how best to achieve our objective. Colleagues have suggested that by opting for self-assessment, the Government is giving a carte blancheto people to reduce the totality of what they pay in their rates. That is not our intention, although admittedly what we are doing is novel.

It is important to make the distinction between valuations and rates. The levying of rates is a function of local authorities and falls under the jurisdiction of the Minister for the Environment, Community and Local Government. Having a modern and balanced system of valuation is essential and, effectively, that is what this Bill is about.

On the question of self-assessment and how it will be rolled out, the Government is of the opinion that this could be a potential game-changer in terms of the valuation system if it successful, but we must get it right. We must make sure that the pilot works and is done on the basis of clear criteria. If it is successful, there is no reason it cannot be rolled out in other parts of the country. The same applies to outsourcing. The question was asked as to who would do the valuation work and whether there would be a conflict of interest if we were to employ local valuers or auctioneers in a certain area to do the work of the Valuation Office, because such people might have an interest in other properties in the same location. However, we could have, for instance, a group of valuers from one part of the country doing valuation work in another part of the country. I must stress that this work would be outsourced to them through the Valuation Office. It would not be paid for by ratepayers. Outsourcing would act as an arm of the Valuation Office, so to speak.

In response to Senator Landy's question, 135 people work in the Valuation Office.