Written answers

Tuesday, 5 February 2013

Department of Environment, Community and Local Government

Commercial Rates Issues

Photo of John LyonsJohn Lyons (Dublin North West, Labour)
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To ask the Minister for Environment, Community and Local Government his views on the small business rate relief scheme in operation in Northern Ireland; his views on whether such a scheme could be implemented here to support small and medium businesses in town centres; and if he will make a statement on the matter. [5787/13]

Photo of John LyonsJohn Lyons (Dublin North West, Labour)
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To ask the Minister for Environment, Community and Local Government his views on the small business rate relief scheme in operation in Northern Ireland and the large retail levy it has introduced on a temporary basis; his views on whether such a temporary levy on large out-of-town retail operations could be considered here to reduce commercial rates for small and medium sized businesses in town centres; and if he will make a statement on the matter. [5788/13]

Photo of John LyonsJohn Lyons (Dublin North West, Labour)
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To ask the Minister for Environment, Community and Local Government his views on the small business rate relief scheme in operation in Northern Ireland and the large retail levy it has introduced on a temporary basis; his views on whether such a temporary levy on large out-of-town retail operations could be considered here to finance targeted measures such as main street improvements and reduced parking charges in town centres; and if he will make a statement on the matter. [5789/13]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 587 to 589, inclusive, 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.

I am aware of the Small Business Rate Relief Scheme in Northern Ireland. Within this jurisdiction, the Local Government (Rates) Act 1970 provides for the operation of rates waiver schemes. Under the provisions, a rating authority may make and carry out a scheme providing for a waiver of all or a portion of commercial rates due by ratepayers in respect of a specified class or classes of property. The formulation of such a scheme is a matter reserved for the members of the relevant local authority and is subject to my consent as nister for the Environment, Community and Local Government.

I have no plans to introduce a temporary levy on large out of town retail operations. In terms of planning policy, I published new Development Contribution Guidelines on 21 January 2012. The new guidelines build on the experience gained in recent years and also align development contribution policy with the Government’s prioritisation of employment creation, investment and sustainable development. Above all the guidelines are intended to support proper planning and sustainable development while also prioritising job creation and economic investment.

I am acutely aware of the pressures on small and medium sized businesses at the present time. Local authorities have been asked by my Department, by way of a circular letter, to exercise restraint or, where possible, reduce commercial rates and local charges for 2013. Local authorities have responded well to such requests in recent years.

I will continue to keep the approach to rates by local authorities under active review, and am determined that every avenue will be pursued to optimise efficiency and contain costs in the local government sector.

Photo of John LyonsJohn Lyons (Dublin North West, Labour)
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To ask the Minister for Environment, Community and Local Government his views on whether local authorities should have the ability to adjust commercial rates to support planning policy; if he will detail the legislative changes that would be required to allow for such changes; and if he will make a statement on the matter. [5790/13]

Photo of Phil HoganPhil 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. 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.

I am acutely aware of the pressures on small and medium sized businesses at the present time. Local authorities have been asked by my Department, by way of a circular letter, to exercise restraint or, where possible, reduce commercial rates and local charges for 2013. Local authorities have responded well to such requests in recent years.

Development contribution schemes were first introduced in 2000 and, together with Exchequer funding and local authoritie’s own resources, have played a significant role in the delivery of infrastructure that has supported development. With the Minister of State for Housing and Planning, Deputy Jan O’Sullivan, I published new Development Contribution Guidelines on 21 January 2012. The new guidelines build on the experience gained in recent years and also align development contribution policy with the Government’s prioritisation of employment creation, investment and sustainable development.

Above all, the guidelines are intended to support proper planning and sustainable development while also prioritising job creation and economic investment.  Key features of the new guidance include:

- A requirement that development contribution schemes appropriately promote the development of areas prioritised in core strategies;

- Reduced rates or waivers for certain categories of development;

- A standard methodology for all planning authorities to follow in the preparation of development contribution schemes; and,

- Measures to support new or existing enterprises through, for example, reduced development contribution rates, deferral payments, etc.

The guidelines issued under section 28 of the Planning and Development Act 2000 - 2012. This means that planning authorities and An Bord Pleanála are required to have regard to the guidelines in performance of their functions under the Planning Acts.

I will continue to keep the approach to rates by local authorities under active review, and am determined that every avenue will be pursued to optimise efficiency and contain costs in the local government sector.

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