Jennifer Murnane O'Connor (Fianna Fail) | Oireachtas source

I thank the Minister. I appreciate the opportunity to speak on this important legislation, on which I have received many submissions. I was impressed by the briefing I received from the Department. It is worth stating that much work goes into these issues and sometimes those who do the work are forgotten. Well done to the Minister of State's officials for the briefings we had with them.

This legislation comes at a time when we need a comprehensive discussion on local government funding. Reductions in central government contributions have resulted in local authorities becoming ever more reliant on local businesses for their revenue. Local authorities are responsible for local economic development and commercial rates can cripple some small businesses. Rates are, therefore, a big issue.

In 2019, business contributions will directly account for €1.55 billion, or 34%, of the total local government budget. That represents a 14% increase in the total value of commercial rates collected since 2010. Some €300 million in rates goes uncollected each year and only four local authorities have collection rates of more than 90%. These are Fingal County Council, Kilkenny County Council, which is the Minister of State's constituency, Roscommon County Council and Dublin City Council. A further 18 councils collected between 80% and 89% of their rates, seven collected between 70% and 79% and two collected less than 70%. Those differences are staggering.

As it stands, this legislation does not go far enough. I and my colleagues in Fianna Fáil support the principles of the Bill and will bring forward amendments to enhance it. I will have amendments, including on councillors, ready for tomorrow's debate.

The Bill should be improved by adding a further relief, staggering payment changes over a long period and increasing efficiencies in rates collection. The Government has spoken of overhauling commercial rates for years but it is only now getting around to doing it. For some businesses, these changes will come too late but if we do this right, we will be able to support businesses in our towns and counties and encourage the vibrant economies that keep this country competing globally.

New commercial rates incentive schemes are needed to encourage regeneration, entrepreneurship and staggered investments. The Bill implements some rate relief mechanism but does nothing to enhance collection efficiency, does not provide for the staggering of payments and will not comprehensively tackle the plight of rural towns, which is an issue I raise constantly with the Minister of State, particularly in respect of Carlow.

In the long run, the system should be reviewed by a new commission on taxation for business to ensure it is fit for purpose in the 21st century e-commerce environment. The current valuation process is leading to a dramatic shift in the rate levels businesses pay. This may be the difference between businesses staying open or going under. Fianna Fáil is proposing a number of measures to help alleviate the burden of commercial rates on businesses. I welcome the efforts in the Bill to consolidate and revise outdated elements of historical laws into a new Bill and to implement the introduction of a targeted rate and waiver schemes. I am a firm believer in waiver schemes and as a member of a local authority, I always knew how important they were.

The current revaluation process undertaken across nine counties is leading to a major rate increase for a wide number of businesses. Dramatic increases threaten to close vulnerable businesses. We cannot have a policy of closing businesses in Ireland, especially in rural Ireland, where the issue of commercial rates are felt most keenly. That is a very important issue to me.

Fianna Fáil is proposing that the level of increase to be levied on any one individual business be capped. Any increase should be allowed to be staggered at the discretion of the local authority over a five-year period. This will mean increases will be limited and spread over time and there will no longer be single large increases as is currently the case. I am sure the Minister of State has had many representations on this issue, which is significant.

We need to secure balanced regional development. We propose putting a rate relief scheme on a statutory footing to allow local authorities to reduce or eliminate rates on new businesses in town centres and rural areas for two years. That is crucial. Local businesses must be consulted on the development of the new incentive schemes. It is important that the Minister of State speak with businesses because they are the generators of revenue. Local government is merely the collection mechanism for us. Businesses that convert upper floors into accommodation should also be eligible for rates relief. We will work on providing such relief in this Bill to secure this goal. We hear daily about all these issues, as does the Minister of State.

Many businesses struggle with cashflow issues or short-term profitability problems. We propose putting in place a formal mechanism under which businesses would be able to appeal to local authorities to restructure debt payments on the basis of an inability to pay.

The Government should ensure that every local authority prevents job losses, allows for enhanced data collection and offers a choice of direct debit payments rather than two lump sum payments to help businesses cope with cashflow issues. That will save jobs, boost efficiency and help raise revenue for local services.

The revaluation process must be scrutinised, including the cost and timelines, which are far too slow. We must provide local authorities with the tools to enhance their relationship with local businesses, thereby creating an environment in which everyone is working together. That is crucial.

Recently, at the Business Picnic in the arboretum in Carlow, an important event in the calendar for businesses throughout Ireland, many speakers noted that teamwork and good staff are at the heart of businesses. Importantly, they pointed out that all the big online players are setting up bricks and mortar offerings to enhance their customers' experience. Bricks and mortar offerings require staff, create jobs and bring spending into the local economy.

We talk about the online shopping world undermining the real shopping world but if we all worked together on issues such as the future of commercial rates we would enhance local businesses and build the local economy, which in turn can build better communities. That has a ripple effect. However, we need to review the entire system in an era where, increasingly, shopping has shifted online because it is about achieving a balance.

We need to demolish the myth that commercial rates are the only revenue raising measure in a town. This week, I asked my local authority to consider my proposal of a loyalty card for Carlow which one would load up to pay for parking. That would allow one to spend money locally and perhaps enjoy special offers but, above all, pay for parking easily and efficiently, thereby creating a flexible parking charge system that encourages short-term stays, rewards return shoppers and removes disproportionate fines. I hope my idea will be considered. The Minister of State might back my proposal for a loyalty card, which I believe should be used by all local authorities.I hope many ideas are considered so that we can increase our competitiveness together. We could talk about other ideas to generate new income in towns - for example, a renewed emphasis on buildings and use flexibility, a reform of urban design frameworks that utilise the archaeological framework of Irish towns, creating strong public transport links for ease of access and encouraging the diverse use of empty units by start-ups and community groups. We can also look at reforming retail planning guidelines, encouraging start-ups, inviting greater footfall on town streets and engaging in public flag projects to create safe, clean streets, ensuring that towns are inviting and are family-friendly areas at all times.

We need to look at providing greater access for those with a disability to our towns and cities and at generating more money in the local economy instead of sending everyone to shopping centres and large towns where the revenue is enjoyed by other citizens. We must engage with everyone. We must give businesses a say and give communities and locals a real voice in shaping the future of our towns. If we consider our towns in terms of value and providing value for money, we can encourage shopping locally because everyone will benefit. We will take Committee Stage tomorrow and I will table some amendments.