Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank the Senators for an interesting debate and exchange on this issue. I am sympathetic to the point being made on all sides of the House regarding the pressures on businesses, which I have observed in my own county. However, the Bill allows us to fix the way in which we value a building and the letting value of that building. Revaluation will go some way towards addressing the issues raised by Senator Mullins. The revaluation process in the towns and villages around the country will take into account the potential lease value of a building. If a town has been decimated during difficult economic times, the revaluation process will assist by establishing a more up-to-date valuation on its buildings. Rates are somewhat linked to profitability for the same reason, albeit indirectly. The letting value of a property is indirectly linked to the potential profit that a tenant or occupier hopes to make from occupying the property. The impact on the letting value is based on the potential for profitability. It is important to note that profitability can vary significantly within and between sectors, such as retail, fuel sales and hospitality.

There are some important points here that must be heard clearly and loudly within local authorities, as they make their decisions in the run-up to their budgets, as well as in the Department of the Environment, Community and Local Government in respect of the commercial rate system as a whole. This legislation is trying to set a value as to how the actual charge is levied and how they arrive at that charge is a matter for local authorities in the first instance.