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

The legislation underpinning many aspects of commercial rates dates from the 19th century. A large body of case law is well established and local authorities and ratepayers are in the main very familiar with and generally accepting of the operation and practice of the rating system, notwithstanding what we discussed earlier. The local authorities must play a leading role in creating a pro-enterprise and supportive environment to generate jobs and sustain existing jobs and are best placed to meet many of the needs of businesses in terms of infrastructure, local promotion and other key enabling measures. In this context, local authorities work with ratepayers who are experiencing financial difficulties and take whatever action is possible to support enterprises that wish to establish, expand and create jobs in their administrative area. Moreover, I have been concerned with an aspect of rating legislation that in my view could give rise to an unfair burden on new occupiers of rateable property, be they companies that wish to expand, relocate or indeed start up. The subsequent occupier provisions contained in the Poor Relief (Ireland) Acts 1838 and 1849 determine that occupiers can held liable for up to two years for the unpaid commercial rates of the previous occupier.

I am taking this opportunity in amendment No. 142 to repeal those provisions and eliminate this financial burden for new occupiers to ensure that any possible barriers to enterprise development are removed. Removing this liability offers the possibility that property that may otherwise have remained vacant and unoccupied can now be re-let, thus improving opportunities in the property market and reducing the instance of vacant commercial properties. The amendments to this effect are set out in Part 4 of Schedule 2. As I said before, rating legislation is complex and there are numerous factors to be considered when proposing an amendment such as this, including its effect on business sentiment and local government finances.

I am taking the opportunity with amendment No. 28 to introduce a new duty to inform the local authority of the transfer of rateable property, be it a change of ownership or tenancy, in order that the local authority is in a position to ensure liability can be established as soon as it falls due. The amendment details the nature of these requirements and the penalty for non-compliance.

Subsection 2(a) places an obligation on property owners to notify the local authority of a change in interest within two weeks of the transfer. This includes a transfer of ownership or tenancy where the person to whom the interest transfers will become liable for rates. This therefore applies in circumstances where the new owner takes up occupation of the premises or a new tenant is moving in.