Shane Ross (Dublin South, Independent)
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Question 348: To ask the Minister for the Environment, Community and Local Government if he will intervene on behalf of small businesses to ensure the system of imposing commercial rates is made more equitable in view of the fact that many small and medium businesses cannot afford to pay their rates; and if he will make a statement on the matter. [20971/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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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. The levying and collection of rates are matters for each individual local authority. The Annual Rate on Valuation (ARV), which is applied to the valuation of each property determined by the Valuation Office to obtain the amount payable in rates, is decided by the elected members of each local authority in the annual budget and its determination is a reserved function of a local authority.

A ratepayer can appeal the valuation of a property to the Commissioner of Valuation under the provisions of sections 30 – 33 of the Valuation Act 2001. This Act comes under the remit of the Minister for Finance.

Commercial rates income makes a significant contribution to the current funding requirements of local authorities. Rates provide the means by which local authorities can fund the services essential to communities, and therefore business, across the full range of local activities including roads, water and waste services, fire and emergency, libraries and a range of community, amenity and social activities. It is through the supply of these services that business can succeed. I recognise that these are difficult economic times for many businesses and in this context I will continue to keep all matters relating to rates under regular consideration in my Department.