Jerry Buttimer (Cork South Central, Fine Gael)
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Question 344: To ask the Minister for the Environment, Community and Local Government the amount of commercial rates written off as bad debts over the past three years for each local authority; the total revenue stream lost to local authorities as a result of commercial rates written off as bad debts; his plans to supplement the shortfall of income to local authorities to minimise any adverse impact on the provision of local services; and if he will make a statement on the matter. [24649/11]

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. As with all local charges, the invoicing and collection of due amounts is a matter for the local authority concerned to manage in the light of prevailing local circumstances and in accordance with normal accountancy procedures. I recognise that these are difficult economic times and I will continue to keep all matters relating to rates under regular consideration in my Department.

The revenue base of local authorities was broadened in 2009 by the introduction in the Local Government (Charges) Act 2009 of a €200 charge on non-principal private residences. The charge is payable in respect of private rented accommodation, holiday homes and other non-principal private residences. As at 15 September, 2011, the non-principal private residence charge has raised €69,821,880 in 2009, €68,294,000 in 2010 and €61,789,760 in respect of 2011.

The EU/IMF Programme of Financial Support for Ireland commits the Government to the introduction of a property tax for 2012. The Programme reflects the need, in the context of the State's overall financial position, to put the funding of locally delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for such services. In light of the complex issues involved, a property tax, requiring a comprehensive property valuation system, would take time to introduce and accordingly, to meet the requirements in the EU/IMF Programme, the Government has decided to introduce a household charge in 2012. The household charge is an interim measure and proposals for a full property tax will be considered by the Government in due course. The charge will be set at €100 and will apply to the majority of the households in the country, subject to a limited number of exemptions and waivers. It is expected to raise some €160 million and it is the intention that the revenues from the charge will support the provision of local services. Legislation to underpin the household charge will be brought before the Oireachtas shortly.

The information requested in respect of each local authority is set out in the following table. 2009 is the most recent year for which audited information is available.