Kevin Humphreys (Labour) | Oireachtas source

The Acting Chairman is very good.

I very much support the spirit of what is being said. We all hear from individuals who have experienced a large spike in rates but we do not always hear from those who have experienced a large decrease in rates. Within the current legislation, rates income must be neutral following a revaluation. This is the difficulty we face.

As I understand the amendment, it will empower the Minister to provide for phased increases in rates. I am not sure if a phased decrease is legally possible because a case could be taken by a commercial ratepayer on the basis that the rates applied to his or business should be much lower, yet the Government was providing that the necessary decrease would be phased in over a number of years to allow the local authority's funds to balance.

I remember distinctly the previous revaluation, which disadvantaged small businesses and shop owners and was of major benefit to hotels and offices. We never heard anything from the hotel sector when rates in the industry decreased significantly in urban areas. That revaluation put small shopkeepers, pharmacies and small restaurants to the pins of their collars because it resulted in an unplanned increase in costs, which they found difficult to manage. Spikes in rates, especially when unforeseen, are difficult for marginal businesses to manage. We have to try to empower local authorities to assist such businesses over a period.

I understand the bind the Minister of State is in arising from the way in which the legislation is currently laid out. Senator Craughwell proposed addressing this issue through a statutory instrument at a later stage. A more in-depth examination of the matter is probably needed because there could be serious unintentional consequences. While I agree with the spirit of the amendment, I understand the difficulties in framing legislation to allow this to happen.