Robbie Gallagher (Fianna Fail)

Cuirim fáilte roimh an Aire Stáit chuig an Teach. A High Court decision last October ruled that a Valuation Tribunal subjecting Vision Ireland charity shop in Virginia, County Cavan, to commercial rates was incorrect in law. The judgment represented the conclusion of a legal challenge that began back in 2019 by Vision Ireland, then NCBI, which now has more than 120 charity shops nationwide. While the judgment currently applies to a single Vision Ireland charity retail store location, the charity's lawyers argue it set a significant precedent that many charity shops may follow, operating for charitable purposes across the country to obtain an exemption from commercial rates. It was argued successfully that retail activities conducted to fund the charitable purposes of the organisation should be exempt from commercial rates under the Valuation Act. Surely it is time the Government provided clarity for local authorities on this matter.

There are approximately 550 charity shops in Ireland, of which Vision Ireland operates 121. In 2024, Vision Ireland paid approximately €450,000 in commercial rates. It is estimated that the total amount of commercial rates collected from all charity shops annually is approximately €2.1 million, which is a tiny fraction of the approximate €1.5 billion in commercial rates received by local authorities annually. This cost takes funds directly away from charity shops providing services for blind and low-vision children and adults. The funds should instead be supporting the charitable purposes of the organisations operating charity shops for people with cancer, in wheelchairs and in hospices; the homeless; overseas aid; and animal welfare.

In County Monaghan, our local family resource centre, Teach na nDaoine, operates two social enterprises on a strict not-for-profit basis, meaning all proceeds go directly towards charitable causes, rather than private gain. I commend Packie Kelly and his team on the fantastic work they do in Teach na nDaoine. They support vital community services while promoting sustainability through the circular economy. Given their charitable status and contribution to social and environmental well-being, they feel it is reasonable and beneficial to exempt them from commercial rates.

Many charity shops rely heavily on volunteers reducing operational costs and providing meaningful opportunities for community engagement. Revenue generated from sales directly supports local and national charitable activities such as homelessness relief, mental health supports, healthcare initiatives and social inclusion programmes. Every euro spent is invested in essential services for vulnerable communities.

Another relevant factor is that charity shops are key players in the circular economy, which focuses on reducing waste, extending the life cycle of products and minimising environmental harm. By providing a second life to these items, these shops significantly reduce carbon footprints associated with new production and disposal. Teach na nDaoine's upcycling hub estimated it had diverted 40 tonnes of textile, furniture and household goods from landfill last year alone.Charity shops offer low-cost clothing, furniture and household essentials to individuals and families who might otherwise struggle to afford them. These charity shops happen to pay rates to the local authorities when those funds could be going to those in most need of them. I hope the Government is aware of this court decision and that it will eventually move on down to all charity shops, which should be exempt or, at the very least, pay minimal rates compared with what they pay currently.