Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

The Local Government Rates and Other Matters Act 2019 was passed by the Oireachtas and enacted on 11 July 2019. Key elements of the Act include a modernisation of rates legislation and practice including variation of rates payment arrangements, the pro ratalevying of rates on occupiers based on period in occupation within a year, the application of interest payments on unpaid rates, minimum charges for vacant commercial premises, a potential rates waiver scheme and amendment to the rate limitation order formula in place in the year following re-evaluation.

These new provisions will add to a suite of options already available to local authorities to support local businesses and ratepayers. Importantly, section 15 of the Act also provides for a rates waiver scheme to be delivered by a local authority to meet national and local policy objectives, including, for example, local area plans under the Planning and Development Act 2000 and local economic and community plans under the Local Government Act 2001.

Currently, only the sections of the Act relating to the amendment of the rate limitation order have been commenced. The commencement of the remaining elements of the Act depends on a number of factors, including the drafting of the requisite prescribed regulations, preparing circulars and guidance to local authorities and ensuring the local government sector will be in a position to have the IT and administrative processes in place to support this new provision fully. It is intended that the bulk of the provisions will be fully operational for the 2021 local authority budget cycle in November 2020. However, based on preparations, they have been delayed by several months due to the impact of Covid-19 and the associated crisis.

The impact of the Covid-19 crisis on local authorities and businesses in 2020 has been significant. The Government has provided a €900 million financial support package to fund the cost of a nine-month waiver of commercial rates, an unprecedented measure that offers support to businesses and certainty to local authorities.

My Department has necessarily prioritised ongoing engagement with local authorities on key financial matters and the development and implementation of a commercial rates waiver.Plans to commence the legislation and introduce the regulations are intended to have effect in time for the 2022 local authority budgetary process. As elected members of local authorities are currently reviewing development plans, they are giving consideration to their own local authorities' objectives for particular areas for intended development, improving existing amenities. It is intended that section 15 of the Local Government Rates and other Matters Act 2019 will be effective for the next local authority budgetary cycle, which will enable elected members to reflect and support decisions they have made regarding development plans at this time in rate alleviation schemes.