Joe McHugh (Donegal North East, Fine Gael)
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Question 213: To ask the Minister for the Environment, Heritage and Local Government if he will suspend or reduce water rates and other local authority rates on school buildings, community buildings, and buildings associated with benevolent voluntary groups; and if he will make a statement on the matter. [17264/09]

John Gormley (Dublin South East, Green Party)
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The Water Framework Directive requires that Member States take account of the principle of recovery of the costs of water services. Accordingly, the Government's Water Pricing Policy requires local authorities to recover the cost of providing water services from the users of these services, with the exception of households using the services for domestic purposes. The policy provides for full cost recovery without profit, with charges based on actual metered consumption.

In January 2008, the Government introduced transitional arrangements for charging schools for water services. The transitional arrangements provide for a flat rate amounting to €4.00 per pupil in the current year (the fee for 2007 was €3.00 and for 2008 was €3.50). To ensure compliance with the Water Framework Directive, the transitional arrangements will cease at the end of this year and all schools will be charged for water services on a full cost recovery and volumetric basis with effect from 1 January 2010.

In relation to other rates, local authorities have a statutory obligation to levy commercial rates on properties that are included in the valuation lists prepared by the Commissioner of Valuation under the Valuation Act 2001. The amount of rates is calculated having regard to the valuation of the property as determined by the Valuation Office and the annual rate on valuation as determined by local authority members in their annual budget.

It is entirely a matter for each local authority to determine the annual rate on valuation when their annual budgets are being adopted. This decision is at the absolute discretion of the elected members of each local authority having regard to the needs of their area, the level and range of services to be provided and all the sources of revenue, including commercial rates, charges and central government grants available to finance those services. I, as Minister for the Environment, Heritage and Local Government, have no function in the determination of the annual rate on valuation.

School buildings used exclusively for the provision of educational services on a not-for-profit basis and property occupied by a charitable body where the facilities are not used for making a private profit are not rateable under schedule 4 of the Valuation Act 2001. In addition, community halls which are not licensed for the sale of alcohol are not rateable under schedule 4 of the Valuation Act 2001.