Sharon Keogan (Independent)
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I thank the Minister of State for taking this question today. I wish to address the significant importance of our local government and the equitable treatment of our elected representatives. Will the Minister of State clarify whether the exemptions from commercial rates which currently benefit TDs, Senators and MPs will be extended to the constituency offices of county councillors? As we are all aware, the exemption for commercial rates for the constituency office of TDs, Senators and MPs is a recognition of the essential public service they provide. It helps them to operate their offices, thereby enabling them to focus on servicing their constituents more effectively. County councillors, who are the backbone of our local government system, do not currently enjoy this exemption. These dedicated representatives work tirelessly to address the needs and concerns of the local communities. Of all elected representatives, they are the closest to our citizens and they are often the first point of contact for constituents seeking assistance on a wide range of issues from housing and planning to local infrastructure and community services.

It is only fair and just that county councillors receive the same support as our counterparts in the national and European parliaments. The financial burden of commercial rates on councillors' constituency offices can be significant, especially considering they receive the lowest pay of all elected representatives and that the majority of them have to work part time in addition to their council work.

A report in the Business Post in 2023 highlighted that Ireland has the weakest local government in the European Union. While broader reforms to strengthen local government are sorely needed, the extension of the commercial rates exemption is a good start and is readily achievable. The lack of this exemption is an unnecessary impediment to councillors' ability to serve the public effectively. I urge the Minister of State to consider the invaluable role county councillors play in our democratic system and to inform this House if the extension of the commercial rate exemption to the constituency offices has been discussed by his Minister. If so, what have they discussed and what plans and timelines have they formulated?

Kieran O'Donnell (Limerick City, Fine Gael)
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I thank Senator Keogan for the question and for the opportunity to discuss the rationale for the valuation of constituency offices. I will take this Commencement matter on behalf of my colleague the Minister for Housing, Local Government and Heritage, Deputy James Browne.

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 property valuation service, and 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. As Minister of State, I have no function in decisions in this regard.

The Valuation Act 2001, as amended, provides that a property is rateable unless it is expressly exempted. Schedule 4 of the Act of 2001 lists the categories of property that are not liable for commercial rates. Paragraph 19 of Schedule 4 provides for an exemption for premises occupied by a Member of either House of the Oireachtas or a representative in the European Parliament and used exclusively by that Member or representative for the purpose of accommodating their constituency office. This exemption does not extend to constituency offices of city and county councillors or offices or premises occupied by political parties.This provision in the Act was introduced to address an anomaly that existed prior to the passage of the legislation where a Deputy or Senator who located his or her constituency office in the Leinster House office complex was not liable for rates because the premises occupied by the Houses of the Oireachtas, being an office of State, would have been exempt from rates under section 15(3) of the Act, and now in Schedule 4, paragraph 12A. Whereas, up to 2 May 2002, the date of commencement of the Valuation Act 2001, if a Deputy’s constituency office were located outside Leinster House, he or she would be liable for rates in respect of that property. Therefore, in the interests of equity, any building or part of a building occupied by a Member of the Oireachtas or the European Parliament is now deemed to be exempt from rates under the 2001 Act if such property is occupied by the Member and used exclusively for the purposes of accommodating that Member’s constituency office. This is established in Schedule 4, paragraph 19, to the Valuation Act 2001.

Notwithstanding the dedication and time committed to the performance of the role and functions of county and city councillors, which we all accept, it is generally acknowledged that elected members of local authorities, while playing an important and pivotal part in the functioning of local government, fulfil their role in a part-time capacity where the vocational or voluntary aspect of public service is a long-standing and valued part of elected office. Consequently, very few, if any, locally elected members occupy rateable premises that are used exclusively for the purposes of accommodating their constituency office. We do, though, acknowledge the great work that councillors do and the vital role they play.

There are no plans at this time for the exemption contained in paragraph 19 of Schedule 4 to the Act to be extended to include constituency offices occupied by county or city councillors, for the reasons I outlined. Exempting any class or use of property, such as offices used exclusively by county and city councillors in the performance of their role, would require an amendment to the primary legislation, namely, the Valuation Act 2001.

Sharon Keogan (Independent)
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I thank the Minister of State. This House might look to amending paragraph 19 of Schedule 4 to the Act in this regard. While I have the Minister of State here, he might comment on whether the Department has discussed changes to the vouched system of expenses for county councillors. Currently, councillors receive €4,200 in vouched expenses and €960 in unvouched expenses. However, after extensive experience of working with many councillors, it is clear the current remuneration is insufficient, especially considering the impact of inflation on operating costs. Councillors are too often restricted in serving their constituents, with the more fortunate ones having to reach into their pockets to make up the difference. Does the Minister for local government intend to reform or improve the current vouched system? These measures would not only provide financial relief but also acknowledge the critical work county councillors do in representing and advocating for their communities.

Will the Minister of State provide a clear and definite answer to this issue? Our county councillors deserve the same level of support and recognition as all our elected representatives. Extending the commercial rates exemption to constituency offices and improving the vouched system is a step forward, ensuring fairness and equity in our local governance system and a move towards strengthening our local democracy.

Kieran O'Donnell (Limerick City, Fine Gael)
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Once again, I thank Senator Keogan for her contribution on this matter. I note the concerns she has raised. More particularly, I refer to the point she raised concerning vouched and unvouched expenses. I have no doubt she will take it up with my party colleague the Minister of State with responsibility for local government, Deputy Cummins. I will also bring it to his attention.

To reiterate, Tailte Éireann is independent in the exercise of its valuation functions under the Valuation Act 2001, as amended, and neither I nor the Minister for Housing, Local Government and Heritage has any function regarding decisions in this regard. The Valuation Act 2001, as amended, provides that a property is rateable unless it is expressly exempted. Schedule 4 to the Act of 2001 lists the categories of property not liable for commercial rates. Paragraph 19 of Schedule 4 provides for an exemption for premises occupied by a Member of either House of the Oireachtas or a representative in the European Parliament and used exclusively by that Member or representative for the purpose of accommodating their constituency office. This exemption does not extend to constituency offices of city and county councillors or offices or premises occupied by political parties. There are no plans at this time to amend the Valuation Act 2001 to change which properties are exempt from commercial rates. This would require primary legislation and a full review to encompass all potentially impacted properties, including the properties discussed in today's debate.