Seanad debates

Thursday, 16 January 2014

Valuation (Amendment) Bill 2013: Second Stage

 

1:45 pm

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

Go raibh míle maith agat, a Chathaoirligh. Cuirim céad fáilte roimh an Aire Stáit, an Teachta McGinley, agus muid ag caint le chéile anois faoi ghnóthaí eile seachas gnóthaí Gaeilge agus Gaeltachta. Ba mhaith liom tréaslú leis na Seanadóirí a thug an Bille seo chun cinn. I bprionsabal, táimid ag tacú leis an rud atáthar ag iarraidh a chur chun cinn, ó thaobh beocht a chur arís sna siopaí beaga agus na gnólachtaí beaga atá sna bailte beaga timpeall na tíre. Is ait liom, ar bhealach, a bheith ag éisteacht leis an Seanadóir White agus í ag éagaoineadh maidir leis an easpa caiteachais atá sna eacnamaíocht agus nach bhfuil airgead i bpócaí daoine, nuair i ndáiríre is é polataíocht na déine agus eacnamaíocht na déine a thug Fianna Fáil isteach, atá á leanacht ag an Rialtas, is cúis le cuid mhaith de na deacraíochtaí atá againn.

I commend the Senators on their introduction of the Bill. Obviously one can find examples around the country, but let me give my county of Galway as an example. Without question the towns of Clifden, Oughterard, Spiddal, Moycullen, Loughrea and Ballinasloe are dying on their feet. However, the spirit of the Bill is to rejuvenate all of those rural towns.

It was amusing to listen to Senator White talk about a lack of spending in the local community when the economics of austerity is the main culprit. The policy was spawned by Fianna Fáil and is being followed through by the Government. The fact that people do not have money in their pockets is a major factor in the demise of local towns and businesses.

The Bill is important because it examines another issue, that of commercial rates. It is a major issue for business but local authorities rely on such rates for funding. In some instances businesses claim that the rates levied on them make it difficult for them to remain in operation. I am not certain of the full truth of that or the extent to which businesses that cease to operate would claim that the level of rates alone was the key factor in making them unprofitable. Obviously there are other issues involved. My party believes that rates should be based on a business’s profitability rather than the valuation of the property, which to some extent is an historical value. During the debate we have heard examples of multiples selling vegetables cheaply. They have leverage over suppliers and some are located next door to grocers who try to sell vegetables sourced from a local market. It is not a level playing field for both enterprises. One way to level the playing field would be to take a company's profitability into consideration when making a rates valuation. My party would like to see that policy put forward.

We would also like the same situation apply here that currently pertains in the other part of the island - that is, that the rate should be revised downwards when a new business moves into an unoccupied building. That would allow new start-up businesses some leeway as they find their feet. As I said, a fairer way to assess a tax, which is what rates are, would be to base it on the level of income generated rather than on the ostensible value of the property, which may bear little relation to the profitability of a business - no more than it does for a farm, for example.

The Bill seeks to allow businesses to basically offset the value of parking spaces provided their rates are reduced. It can be argued that the provision of parking spaces helps to bring more people into a town centre and, therefore, boosts the local economy and, by extension, the local authority. An argument in favour of the measure can be made, which I presume is the objective of the framers of the Bill, if the parking spaces are provided free of charge. If the businesses charge for parking then it is a source of profit and, therefore, is deemed to be an integral part of their income which should not be written off.

There is also the argument that if one allows some of the larger retailers to obtain lower rates because they provide free parking on hard surfaces that are part of their property, one is in effect allowing a substantial part of their property to be rate-free. All of these issues need to be considered as we debate the Bill. Perhaps a distinction can be made between the size of the businesses concerned.

I bprionsabal tacaíonn muid leis an iarracht atá ar bun ag na Seanadóirí anseo cothrom na féinne a thabhairt ar ais arís agus beocht a chur ar ais sna bailtí beaga timpeall na tíre, go háirithe sna ceantair tuaithe. Tacaíonn muid leis an meon atá ag cur sin chun cinn. Tá an díospóireacht spéisiúil go maith agus tá muid ag súil go dtógfaidh an Rialtas ar bord an méid atá ráite agus é ag cur an Bhille nua chun cinn, agus an méid adúirt an tAire Stáit, Deputy Jan O'Sullivan, níos luaithe. Tá súil againn go dtógfaidh siad ar bord na moltaí dearfacha atá á dhéanamh anseo sa Seanad inniu.

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