Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

I am taking this debate on behalf of my colleague, the Minister, Deputy Phil Hogan. I will convey Senator Higgins's views to him.

The Local Government Act 1946 provides that where a property in a county council or urban local authority area is unoccupied on the date of the making of the rate, the owner becomes liable for payment of rates. However, the owner is entitled to a 100% refund if the property is vacant for specified purposes. These are: where the premises are unoccupied for the purpose of the execution of additions, alterations or repairs; where the owner is bona fide unable to obtain a suitable tenant at a reasonable rent; and where the premises are vacant pending redevelopment. A small number of urban local authorities have historically had separate legal provision enabling a refund of 50% of rates on vacant properties. While the same criteria for refunds apply, 50% of the rates paid is refundable to the owner of vacant premises in the cities of Dublin, Limerick and Cork. These legislative provisions are as follows: section 71 of the Local Government (Dublin) Act 1930; section 29 of the Limerick City Management Act 1934; and section 20 of the Cork City Management (Amendment) Act 1941. The majority of local authorities are currently subject to the provisions of the 1946 Act and the 100% refund regime.

Section 31(b) of the Local Government Bill 2013 seeks to amend the Local Government Act 1946 by reducing the 100% refund regime to 50% for all local authorities, effectively reducing the refund rate to the same level as currently pertains in Dublin, Limerick and Cork cities. The Minister for the Environment, Community and Local Government's intention, in standardising the level of vacancy refunds in this way, is to provide an additional incentive to commercial property owners to let commercial property and to reduce the incidence of vacancies, particularly in urban centres, thereby bringing commercial properties back into productive use. From a local authority perspective, vacant commercial properties are also beneficiaries of local authority services such as pavement improvement, street cleaning, street lighting and so on. It is only fair that owners of vacant properties should make a contribution, though less than those occupied, to the cost of providing these services.

The Minister, in introducing the Bill on Second Stage in the Dáil last month, indicated that he is fully conscious of the difficult economic environment in which many businesses and property owners continue to operate. He further indicated there are numerous factors to be considered when proposing an amendment to rates legislation, including its effect on business sentiment and its impact on local government finances. The Minister intends that this provision should not be interpreted as a further cost on business and gave a commitment to the House to revert to this matter again as the Bill makes its way through the Oireachtas to ensure there are no unintended consequences in how the provision would work in practice. There will, of course, also be an opportunity for the issue to be discussed when the Bill comes before this House for debate next month. I am sure the points raised by Senator Higgins will be considered by the Minister in the immediate future and when the Bill comes to the House.