Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

Question 480: To ask the Minister for the Environment, Heritage and Local Government his plans to introduce rates remission for new businesses to encourage job creation; and if he will make a statement on the matter. [27692/09]

John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

Rates are local property taxes that are levied by local authorities on commercial properties that are rateable under the Valuation Act 2001. The determination of the annual rate on valuation which is applied to property valuation to calculate rates is a decision taken locally by the elected members of a local authority in their annual budget. In order to support economic activity and employment, both nationally and locally, and to protect the interests of communities, I specifically requested that local authorities exercise restraint in setting any increases in commercial rates in their 2009 Budgets. Local authorities recognise the challenging environment in which business operates and have responded positively to this request. The national average increase in annual rates on valuation in 2009 is 1.15%, with many authorities not introducing any increase at all.

I have also asked that each county and city council establish a small Business Support Unit, or alternative, to act as a point of contact to ensure a quick, streamlined and coordinated response to existing and new businesses from local authorities in areas such as planning, water and roads.

I recognise the importance of rates income as a contribution to the cost of services provided by local authorities. These services are of considerable benefit to all in the local authority area, including ratepayers and businesses generally. The introduction of rates remission for new business could result in a diminution in the ability of local authorities to deliver such services or in the rates income forgone through such a scheme being raised through an increase in rates charges on other establishments. I will continue to keep the approach to rates by local authorities under regular review.