John Cummins (Waterford, Fine Gael)

I thank Senator Gallagher for raising this question, which gives me the opportunity to discuss the commercial rates position regarding registered charities and charity shops. As the Senator will be aware, Tailte Éireann is an independent Government agency under the aegis of the Department of Housing, Local Government and Heritage. Tailte Éireann provides a property registration system, a valuation service and a national mapping and surveying infrastructure for the State. Tailte Éireann is independent in the exercise of its valuation functions under the Valuation Act 2001, as amended, and the Minister for Housing, Local Government and Heritage has no function in regard to decisions made by the body.

The Valuation Act 2001, as amended, provides that a property is rateable until it is expressly exempted. Schedule 4 of the Act of 2001 lists the categories of property which are not liable for commercial rates. Paragraph 16 of Schedule 4 provides that a charitable organisation that uses a property exclusively for charitable purposes other than for private profit is exempt from the payment of rates. However, the question of the rateability or otherwise of individual charity shops would need to be considered on the basis of the particular circumstances of the case and how the provisions of the Act apply in that specific case. Generally, shops operated by charitable organisations are rateable on the basis that the retail activity conducted therein is deemed not to be of a charitable purpose within the meaning of the legislation. As a matter of course, Tailte Éireann examines all properties on their individual merits by reference to the relevant statutory provisions governing the operation of the Valuation Act 2001, as amended. It is understood from Tailte Éireann that the long-held position is that charity shops, as retail units, are rateable; that is, while the occupier of the retail unit may be a charitable organisation, the activity of retailing itself is not a charitable purpose.

There are a number of avenues of redress for an occupier of a rateable property who is dissatisfied with the determination of the valuation by Tailte Éireann made under the provisions of the Valuation Act 2001, as amended. First, before a determination is made, there is a right to make a representation to Tailte Éireann in relation to a proposed valuation. Later in the process, if the occupier is still dissatisfied with the determination, there is a right of appeal to the Valuation Tribunal, which is an independent body set up for the purpose of hearing appeals against determinations of Tailte Éireann. There is also a right of appeal to the higher courts on a point of law.

While I do not want to discuss the individual case that the Senator has referenced, the position as set out is the position that has been the case heretofore. I appreciate the points the Senator has made in his contribution and the value that organisations like Vision Ireland bring to the people they support and serve. I thank the Senator for raising the matter.