Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I do not propose to accept amendment No. 20 even though I understand the spirit of the amendment in terms of where the Senators are coming from. How we levy the commercial rates will continue to be a reserved function of the local authorities and the elected members. Senator Crown was concerned that in the future that might not continue to be a reserved function of local authority members.

The valuation Bill is critical to how we apply commercial rates and the Minister, Deputy Howlin, is developing proposals on the valuation for Committee Stage of the Bill, which is currently before this House. I understand he will be in the House again in February or March for a discussion on the particular changes the Senator has advocated. It is an antiquated system and it needs to be changed. The economic indicators or whatever criteria we come up with have to be taken into account but, equally, we must have a stable system of funding local government and providing the necessary finance for those services. There is a balance to be struck but we are making provision in this legislation for harmonisation downwards towards the lowest rate in the county. That is a prudent measure to take account of these difficult times for businesses. I have already done it in Waterford, Limerick and Tipperary because they are merged counties, and it is up to the elected members to make sure the savings are achieved to harmonise it downwards. I am giving them a ten year transitional period in which to do that. These amendments go towards allaying the concerns people might have about the possibilities of increasing rates for ratepayers in relevant areas. We are advocating, and inserting in the legislation, that savings are achieved to ensure downward harmonisation.