Paudie Coffey (Fine Gael) | Oireachtas source

Senator Humphreys has put his finger on the nub of the issue. All of us understand the intent and spirit behind the amendment and the need for understanding to be shown if there is a sudden increase in the rates payable after a revaluation. If we go back to the whole framework for rates, we all agree that they should be fair, sustainable and neutral. During yesterday's Second Stage debate, I highlighted that where revaluations have occurred, there have been winners and losers. Senator Humphreys referred to a previous revaluation. While we hear about the losers because they are concerned about the increase and the spike in their rates, we rarely hear about the winners who see a reduction in their rates.

I am concerned about the consequences should this amendment be passed and implemented. I would like to hear from the Opposition Senators who proposed the amendment how they would address the shortfall in rates income which would be faced by local authorities if the amendment was in place. I presume those who I would categorise as the winners, namely, those who have had a reduction in rates, are constitutionally entitled to have those reductions and would rightly seek them because they are provided for in the revaluation. This would leave a gap in the funding available to the local authority to deliver the vital services we all want. The question I ask the Opposition, rather than the Minister of State, to answer is how we would address the shortfall in funding available to local authorities in the event that the amendment is passed? I presume the Senators will answer that it will come from central government's magic tax revenues.

The rates system has to be sustainable in its own right. As was said on Second Stage yesterday, rates are a major and fundamental mechanism for funding local authorities to deliver services. I fully understand the intent around the amendment and perhaps there is a compromise or solution the Minister of State might consider when a significant spike in rates payable arises. Perhaps ratepayers could be given time to become accustomed to the higher rate. Rates are a big overhead in any business. Anybody who has run a small business will agree that the rates bill is one of their largest overheads. Local authorities could allow an increased rates bill to be paid over a period. I offer this solution as a matter for debate but I want to know where the shortfall would come from if this amendment was to pass.