Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Senator Byrne for the amendment. This is a rates issue and measures have already been taken earlier this year by the Minister for the Environment, Community and Local Government in this regard. The Local Government Reform Act 2014 was enacted in January and introduced a range of reforms to the local government system. It included some important measures to address some of the main issues affecting payment of commercial rates by businesses, including repeal of subsequent occupier liability. Schedule 2 and Part 6 of the Act repeals subsequent occupier liability within rating law by amending section 71 of the Poor Relief (Ireland) Act 1838. I know Senator Barrett will give out to me for quoting legislation from so far back. It also deleted section 19 of the Poor Relief (Ireland) Act 1849, the effect of which was to remove the liability placed on new occupiers of properties for up to two years of outstanding rates of the previous occupier.

The commencement of the repeal was given effect to in the Local Government Reform Act 2014 (Commencement of Certain Provisions) (No. 2) Order of 2014, statutory instrument 146 of 2014. It took effect from 24 March 2014. This is a strong indication of the Government's commitment to removing any barrier to enterprise development and supporting business start-ups or existing businesses wishing to expand or relocate. It was not the intention in removing subsequent occupier liability to undermine local authorities' collection powers and put at risk the collection of rates income. That is why a related provision within the Local Government Reform Act 2014 indicated that all unpaid and outstanding rate liabilities should be discharged prior to the transfer of ownership or other interest in a property, including tenancy. This transfer of interest must be notified to the local authority within two weeks of its effect. A penalty has been provided where the owner does not meet obligations under the Act. This measure strengthens local authority collection powers in the area without causing any additional burden for subsequent occupiers. Furthermore, this section provides that any rates due by any owner of a relevant property and not discharged shall remain a charge on the property. The amendment took effect from 1 July 2014.

In principle, we agree with what Senator Byrne's amendment is trying to do and we contend his aims were realised in the Local Government Reform Act 2014.