Paddy McHugh (Galway East, Independent)
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Question 533: To ask the Minister for Finance if he will introduce measures to designate equestrian centres as non commercial premises in order to avoid such premises being burdened with rates; and if he will make a statement on the matter. [1362/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I would point out that the Commissioner of Valuation is independent in the exercise of his duties under the Valuation Act 2001, and that I, as Minister for Finance, have no function in decisions in this regard.

The Valuation Act, 2001 provides in Schedule 3, Sections 1(a) and (b) that all buildings and lands used or developed for any purpose including constructions affixed thereto are rateable. The basic premise under the Act is that all interests (including buildings) and all developed land are rateable unless expressly exempted under Schedule 4.

Equestrian centres typically include stables for horses, a covered riding ring and ancillary buildings to support the enterprise. These are not excluded from ratability under the Act. Land that is developed for sport, such as, for example, playing pitches, golf courses, tennis courts etc is exempt under Schedule 4, Section 4. Buildings on these lands, such as stands, bars, etc. are not, however, exempt. Non-licensed club-houses are treated as "community halls" and as such are exempt because they are not run for profit, are open to the general community, are recreational or otherwise are of a social nature. It is considered that none of the specific exemptions contained in Schedule 4 would encompass equestrian centres.

The Valuation Act, 2001 maintains the long-standing position that commercial enterprises — including equestrian centres — are liable for rates. Exceptions to this key principle would quickly be followed by demands for similar treatment from the providers of other useful services and products, which would be difficult in equity to resist. The process could thus substantially reduce Local Authority revenues, which would have to be made good by imposing corresponding increases on the remaining ratepayers.

The rateable valuation of commercial property is based on net annual value (NAV) i.e. the rental value of the property. Any ratepayer dissatisfied with the ratability of a property, the valuation assessed on a particular property or the method of calculation can appeal to the Commissioner of Valuation in the first instance and subsequently to the independent Valuation Tribunal. There is also a further right of appeal to the High Court and ultimately to the Supreme Court on a point of law.

Rating legislation, as distinct from valuation legislation, and issues arising from it are matters for my colleague the Minister for the Environment, Heritage and Local Government. I would also point out that in relation to funding for equestrian centres; the Irish Sports Council has provided funding of over €4m to the Equestrian Federation of Ireland between 1999 and 2006. From 2007 funding for equestrian sport will be provided through the new national governing body Horse Sport Ireland. Grants of €66,000 have been allocated to Equestrian sports in the past five years under the Sports Capital Programme administered by the Department of Arts, Sport and Tourism. Equestrian projects have also been supported under the Tourism Product Development Scheme 2000-2006 (grant aid of €3.45m has been approved in respect of 7 projects) towards the provision and development of equestrian centres.