Michael Healy-Rae (Kerry South, Independent)
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1478. To ask the Minister for Environment, Community and Local Government with regard to local authority rates if it is appropriate for the adaption of a town centre first approach in town centres as well as the implementation of section 2 of Local Government Rates Act 1970 to permit local authorities to grant rates waivers or reductions for new entrants which meet local authority identified retail mix deficiency, as this will assist in achieving balanced retail and hospitality mix in towns and cities here; and if he will make a statement on the matter. [33065/14]

Alan Kelly (Tipperary North, Labour)
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Under the provisions of the Local Government (Rates) Act 1970, a rating authority may make and carry out a scheme providing for the waiver by the authority of all or a portion of commercial rates due by ratepayers in respect of a specified class or classes of property. The making of such a scheme is subject to the consent of the Minister for the Environment, Community and Local Government.

I would consider any application received for a rate waiver scheme carefully. In considering any such application, it has to be borne in mind that a waiver of rates for one class of ratepayer could unfairly impact on existing businesses in the area by giving a competitive advantage to a certain group through a reduction in costs. In addition, the introduction of a waiver scheme could further increase costs on the part of businesses that are not part of the scheme, as it is likely that they would be required to make up the cost of the waiver scheme through the payment of additional rates. This could impose an additional burden on such ratepayers.

Recent developments have seen some local authorities introduce locally designed business incentive scheme which promotes the use of vacant commercial property. Such schemes rely upon Part 9 of the Local Government Act 2001 which provides that the functions of local authorities include providing grants, loans guarantees or other financial aid to promote the interests of the local community, including economic interests. Unlike rates waiver schemes under section 2 of the Local Government (Rates) Act 1970, no ministerial sanction is required for the setting up of these schemes. I will continue to keep commercial rates related issues under consideration.