Robert Troy (Longford-Westmeath, Fianna Fail)
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Question 527: To ask the Minister for the Environment, Community and Local Government his plans to review the current mechanism for setting commercial rates to bring in a more equitable system. [22685/11]

Nicky McFadden (Longford-Westmeath, Fine Gael)
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Question 574: To ask the Minister for the Environment, Community and Local Government if he will comment on the difficulty facing businesses in paying rates; if any changes to the way rates are calculated will be considered; and if he will make a statement on the matter. [23510/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 527 and 574 together.

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.

The Commissioner of Valuation, who has sole responsibility for all valuation matters, is conducting a programme of revaluation of all commercial and industrial properties throughout the State on a county by county basis. The purpose of the revaluation process is to provide for more consistent and up-to-date valuations for rating purposes and to assist in making the rating system fairer and equitable for ratepayers. Following completion of the revaluation programme, there will be a much closer and uniform relationship between rental values of property and their commercial rates liability and this relationship will thereafter be maintained by means of recurring revaluations provided for in the Valuation Act.

The Commissioner of Valuation is actively reviewing options which might hold potential for accelerating the delivery of the revaluation programme to all rating authorities within a shorter timeframe. I recognise that these are difficult economic times for many businesses and I will continue to keep all matters relating to rates under regular consideration in my Department.