Emmet Stagg (Kildare North, Labour)
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Question 48: To ask the Minister for the Environment, Heritage and Local Government the reason a proposal by a town council to implement a rates waiver scheme under section 2 of the Local Government Rates Act 1970 was rejected by him. [44396/10]

John Gormley (Dublin South East, Green Party)
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I presume the Question refers to the recent application from Carrick-on-Suir Town Council to introduce a rates waiver scheme for new businesses.

Under the provisions of the Local Government (Rates) Act 1970, a rating authority may make and carry out a scheme providing for the waiver by the authority of all or a portion of commercial rates due by ratepayers in respect of a specified class or classes of property. The making of such a scheme is subject to the consent of the Minister for the Environment, Heritage and Local Government.

Any application received for a rate waiver scheme is carefully considered. However, in considering any such application, it has to be borne in mind that a waiver of rates for one class of ratepayer could unfairly impact on existing businesses in the area by giving a competitive advantage to a certain group through a reduction in costs. In addition, the introduction of a waiver scheme could further increase costs on the part of businesses who are not part of the scheme, as it is likely that they would be required to make up the cost of the waiver scheme through the payment of additional rates. This could impose an additional burden in what are already difficult economic circumstances.

I took these factors into consideration in making my decision not to consent to the proposed waiver scheme in this case.