Jim Daly (Cork South West, Fine Gael)
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Question 37: To ask the Minister for the Environment, Community and Local Government his views on ordering a Ministerial directive to the management of local authorities to allow them to have a certain amount of discretion in relation to the collection of commercial rates and in particular the element of arrears incurred by previous tenants, which is making it very difficult to rent premises to new tenants. [30243/11]

Seán Crowe (Dublin South West, Sinn Fein)
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Question 43: To ask the Minister for the Environment, Community and Local Government his plans to review the commercial rates system. [30319/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 37 and 43 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 update commercial valuations which will assist in providing a more equitable distribution of rates across those liable to pay rates.

Local authorities have been asked to exercise restraint in setting the Annual Rate on Valuation (ARV) in this and previous years and they have responded positively in this regard. Local authorities are also facilitating payment of commercial rates by instalments including by direct debit.

Under the legislation the person liable for payment of rates is the person in occupation of a rateable property on the date of the making of the rate by the relevant local authority. The owner rather than the occupier may be liable for commercial rates if the property in question is unoccupied on the date of the making of the rate. Should a person's occupancy commence after the date of the making of the rate then that person is not primarily liable for rates for that year. However, as a subsequent occupier, that person can be held liable for up to two years arrears of rates if they cannot be recovered from the person with whom the primary liability lies.

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.