Mary Upton (Dublin South Central, Labour)
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Question 949: To ask the Minister for the Environment, Heritage and Local Government if he has considered implementing a rate subsidy scheme to allow local authorities to reduce rates in particular areas (details supplied) to allow these businesses to remain active and employing persons whilst not causing the local authority to further erode its rate base; and if he will make a statement on the matter. [33004/09]

John Gormley (Dublin South East, Green Party)
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Rates are local property taxes that are levied by local authorities on commercial properties 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.

I have no plans to introduce a rates subsidy scheme that would favour one commercial sector over another. However, 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.

I am cognizant of 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, including ratepayers and business generally. I will continue to keep the approach to rates by local authorities under review.