John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

No. The ultimate power is being given to the Minister. A similar provision was in existence until the 1980s, when it was last used. I am not sure when it was removed from legislation. The provision allowed the Minister a power of limitation on the setting of the ARV, which is the annual event that takes place at the budget meeting, as the Senator outlined. Essentially, however, the councillors will be made aware before the budget takes place as the Department circularises the councils every year. It did so particularly during the years of the recession, with the need to keep the ARV as low as possible. Not every local authority has done this over the past ten years. To that extent, this facility already exists. Section 6 provides for the power of limitation. Ultimately, the power rests with the Minister, but the chief executive in this case is, I suppose, an agent of the Minister in the local authority ensuring that such provision is adhered to. I emphasise, however, that the setting of the ARV is still the prerogative of local authority members. Furthermore, in section 15 a new reserve power is being created for members of local authorities. This is the establishment of an alleviation scheme, which must be based on the provisions of a development plan, an area plan or a national Government strategy such as the spatial strategy or the Project Ireland 2040 provisions currently in place. Again, the ultimate power will still rest with the members. The provision under section 8 for the power of limitation is a ministerial one. The chief executive in this case will act as an agent of the Department and the Minister in ensuring that when councillors strike the annual ARV they do so within certain parameters.

Generally speaking, in the 20 years since I joined a local authority, there have not been huge annual increases in commercial rates during what were called the Celtic tiger years. There were certainly increases in various local authorities but they tended to be within fairly modest parameters such as 2% or 3%. We are anxious that local authorities would still act independently but we are conscious that overall national economic circumstances may change, as happened a decade ago. Local authorities voluntarily decided, through their membership, not to have large annual increases in commercial rates because they recognised the value of keeping businesses open and having some money to pay rates in the future, as well as keeping premises occupied on streets in towns and villages throughout the country. This provision places on a statutory footing the existing capability of the Department to circularise the local authorities asking them to use their discretion.