Mattie McGrath (Tipperary South, Independent)
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Question 191: To ask the Minister for Public Expenditure and Reform the status of the programme of revaluation of all commercial and industrial properties that is currently being carried out throughout the State; the number of counties that have been reviewed, and which counties; when this review will be completed; if he will reorganise the Valuation Office to ensure that those carrying out property revaluations are separate from those who set the initial valuations; and if he will make a statement on the matter. [37278/11]

Brendan Howlin (Wexford, Labour)
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The work of the Valuation Office is underpinned by The Valuation Act 2001 which provides for the valuation of all commercial and industrial property. The Commissioner of Valuation is independent in the performance of his functions under the Act and the making of valuations for local authority rating is his sole prerogative. Under the 2001 Act, which came into force on 2nd May, 2002, the basis of valuation for all commercial property is net annual value, i.e. the rental value of the property.

A national programme is being rolled out progressively for the revaluation of all commercial and industrial properties in the country. It aims to provide up-to-date valuations for properties that are subject to local authority rates. It is an important programme, especially given the significant changes in values and rents following the economic downturn of recent years. The revaluation process is the mechanism whereby economic changes that take place in the property market are reflected in the valuation lists and in individual ratepayers' rates liabilities. The purpose of a revaluation is to redistribute commercial rates liabilities among ratepayers based on up-to-date values. Following revaluation, there will be a much closer relationship between rental value and commercial rates liability. Some ratepayers will gain while others will lose from the process of redistribution but, overall, there will be a fairer distribution of the rates burden.

The revaluation programme, which has been completed in three County Council areas in Dublin, began in November 2005 in the South Dublin County Council area and has since been rolled out to the areas covered by Fingal and Dún Laoghaire-Rathdown County Councils. The revaluation of South Dublin was completed in December 2007, Fingal was completed in 2009 and Dún Laoghaire-Rathdown was completed in 2010. The revaluation of Dublin City Council area was launched on the 5th Mary 2011 and the Commissioner is currently concluding consultations with local authorities in Waterford and expects to sign valuation orders extending the revaluation programmes to Co. Waterford soon. He has also initiated consultations with the two local authorities in Limerick about extending the revaluation programme to these areas.

While the extension of the project to Dublin City earlier this year represents an important advance, after an enforced delay caused by conditions in the property market, the Commissioner has expressed his concern that the present rate of progress may not allow the Office to complete the job nationally within the ten years from 2008 to which the Office previously committed.

To address the problem the Valuation Office is taking steps to improve productivity and is looking at new ways and methodologies to accelerate the revaluation.

The Commissioner has indicated that, following detailed examination of various possibilities over the past few months, it may be feasible to introduce a Self Assessment approach, accompanied by appropriate controls, and that it might be possible also to outsource some of the work. As well as helping to speed up the national programme, an element of outsourcing, if it proves practicable, would allow comparison of the Valuation Office productivity and costs with those in the private sector. The enabling provisions to allow for these changes are included in proposals for amending legislation made to me by the Commissioner. Preparatory work is continuing and, subject to the enactment of the legislation and availability of the necessary resources, the intention would be to initiate pilot revaluations in two local authority areas. The Valuation Office is also looking at ways of speeding up the capture of data on properties throughout the country in advance of revaluation in particular areas.

My Departmental officials are reviewing the various proposals for modernising and streamlining the valuation process, including the appeal provisions, in the interests of both ratepayers and the local authorities and the speeding up of the revaluation programme. A significant amount of work has already been undertaken and preliminary Heads of Bill have been drafted in conjunction with the Valuation Office and the Attorney General which I hope to bring to Government for approval shortly.