Colm Keaveney (Galway East, Independent)
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To ask the Minister for Environment, Community and Local Government in view of the introduction of the local property tax, if he has any plans to introduce legislation reforming the system of commercial rates, taking into account the state of our domestic economy and the strain that many small businesses are under, the need to retain vibrant town centres, and the irregularities in the system of valuations for such rates; and if he will make a statement on the matter. [14356/13]

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 Commissioner for Valuation has sole responsibility for all valuation matters, including the most appropriate method of valuation. The levying and collection of rates are matters for each individual local authority.

It is important to acknowledge that commercial rates, as a local tax, and the rating system generally are deeply embedded in the local government system. A large body of case law is well established and local authorities and ratepayers are, in the main, very familiar with, and generally accepting of, the operation and practice of the rating system. Rates also provide a stable source of financing for local government which is not affected unduly by short-term changes in economic circumstances.

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 to exercise restraint or, where possible, to reduce commercial rates and local charges for 2013. Local authorities have responded well to such requests in recent years and in 2013, 87 out of the 88 rating authorities have either reduced their ARV or kept it the same as in 2012.

I have no immediate plans to amend the legislation governing commercial rates. I am however, keeping 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.