John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 317: To ask the Minister for the Environment, Heritage and Local Government his views on the need for reform of the local authority commercial rates system; if he will introduce a simple appeal process in relation to the valuation of a property; they way that a valuation is arrived at; if he will instruct local authorities to reduce the commercial rate in view of the current economic climate and the need to being costs into line to improve competitiveness here; if he will amend legislation putting the onus on commercial tenants to pay the rate in full; and if he will make a statement on the matter. [5981/10]

John Gormley (Dublin South East, Green Party)
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Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. Commercial rates are normally paid by the occupier of the premises in question.

The levying and collection of rates are matters for each individual local authority and the determination of the Annual Rate on Valuation (ARV), which is applied to property valuations to calculate rates, is a decision taken locally by the elected members of a local authority in their annual budget. I, as Minister for the Environment, Heritage and Local Government, have no direct function in the matter.

I am nevertheless aware of the economic pressure on local businesses and in 2009 and 2010 I specifically requested that local authorities exercise restraint in setting commercial rates in order to support competitiveness in the economy and to protect the interests of communities. Local authorities have responded well to this request and I will continue to keep the approach by them to rates under regular review.

The question of the valuation of industrial and commercial premises is a matter for the Minister for Finance, as the Valuation Office comes under his remit.