Written answers

Thursday, 12 January 2012

Department of Environment, Community and Local Government

Local Authority Charges

5:00 pm

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Question 172: To ask the Minister for the Environment, Community and Local Government if he will provide a breakdown of the amount collected from commercial rates levied on Irish businesses by local authorities for each of the years 2000 to 2011, inclusive; the number of businesses levied each year; the percentage for local authority expenditure this total represented for each of the years concerned in tabular form; and if he will make a statement on the matter. [1665/12]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Question 173: To ask the Minister for the Environment, Community and Local Government if he will provide a breakdown, of the amount collected from water charges levied on Irish businesses by local authorities for each of the years 2000 to 2011, inclusive; the number of businesses levied each year; the percentage of local authority expenditure this total represented for each of the years concerned in tabular form; and if he will make a statement on the matter. [1666/12]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Question 174: To ask the Minister for the Environment, Community and Local Government if he has conducted any review of the economic impact of local authority rates on small and medium businesses; and if he will make a statement on the matter. [1667/12]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Question 175: To ask the Minister for the Environment, Community and Local Government his plans to review the commercial rates payable to local authorities in view of the funding such bodies will receive from water charges and property tax; and if he will make a statement on the matter. [1668/12]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Question 178: To ask the Minister for the Environment, Community and Local Government if he has considered granting local authorities the power to reduce all or part of a business's commercial rates bills in cases of extreme financial hardship, as is the practice in the United Kingdom; and if he will make a statement on the matter. [1671/12]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 172 to 175, inclusive, and 178 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. 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.

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 providing a more equitable distribution of valuations across those liable to pay rates. The Commissioner, in consultation with my colleague, the Minister for Public Expenditure and Reform, has been reviewing various options for streamlining the valuation process and speeding up the national revaluation programme. In this regard, the Government recently approved the drafting of a Valuation Bill to amend the Valuation Act.

I recognise that these are difficult economic times for many small and medium size businesses. I have asked local authorities to exercise restraint in setting their 2012 ARVs in the context of the adoptions of their 2012 Budgets. Local authorities have responded positively to similar requests in recent years. I will continue to keep all matters relating to rates under consideration in my Department. Local authorities play a central role in supporting economic development and enterprise at local level. They do this in a number of ways, including through their capital and current budgets, economic planning and development and the provision of goods and services as well as community infrastructure. Business support units in each county and city council are providing a focal point for businesses to engage appropriately with the local government system on relevant matters in setting up and managing their businesses. The Government's commitment to align the community development sector with local government will also see a more co-ordinated focus on the support of local enterprise and community development.

The EU/IMF Programme of Financial Support for Ireland commits to the introduction of a property tax and domestic water charges. In the light of the complex issues involved in the introduction of a property tax, the Government decided to introduce a household charge in 2012 to meet the EU/IMF commitment. The household charge, which, if collected in full, will contribute €160 million towards the provision of local services, is an interim measure and proposals for a full property tax will be developed and considered by the Government as soon as possible. The property tax will provide a more stable funding base for the local government sector.

The Programme for Government also commits to the introduction of a fair funding model to deliver clean and reliable water. The objective is to install water meters in households connected to public water supplies and to move to a charging system that is based on usage. My Department is finalising a strategy to implement these proposals and I will be in a position to announce further details shortly.

The information requested in respect of commercial rates and water charges is set out, where available, in the following tables. In the years 2000 to 2003, local authorities published their accounts on a cash accounting basis and from 2004 on an accruals basis. The figures are, therefore, not directly comparable across all years.

The information requested on the number of businesses levied for commercial rates and water charges is not available in my Department. In addition, the data requested in relation to commercial water charge receipts for the years 2000 to 2003 are not available to me. For these years consolidated figures in respect of 'Receipts for Public Water Supply' are available. However, these figures would include commercial water charges and other income such as charges related to group water schemes, state grants and inter-local authority payments. The data requested in respect of 2010 and 2011 are not yet available in my Department. Audited annual financial statement data for 2010 and 2011 will be available by 31 March 2012 and 31 March 2013 respectively.

Commercial Rates
Cash ReceiptsCash Receipts as % of Cash ExpenditureIncome - Accruals BasisIncome as % of Expenditure - Accruals Basis
2000€586,455,72824%N/AN/A
2001€662,750,75623%N/AN/A
2002€750,154,32723%N/AN/A
2003€839,297,99225%N/AN/A
2004€875,908,097N/A€942,791,17125%
2005€1,020,425,365N/A€1,050,449,23126%
2006€1,134,488,242N/A€1,188,865,93127%
2007€1,232,785,108N/A€1,267,366,00226%
2008€1,276,265,552N/A€1,356,392,80926%
2009€1,263,368,440N/A€1,408,720,93629%
Commercial Water Charges
Cash ReceiptsCash Receipts as % of Cash ExpenditureIncome - Accruals BasisIncome as % of Expenditure - Accruals Basis
2004€106,305,672N/A€120,903,7113%
2005€134,286,704N/A€132,767,0803%
2006€141,896,649N/A€147,228,5763%
2007€145,232,026N/A€169,238,0043%
2008€163,845,502N/A€195,436,5024%
2009€169,932,784N/A€210,352,2884%

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