James Bannon (Longford-Westmeath, Fine Gael)
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144. To ask the Minister for Public Expenditure and Reform if consideration has been given to supporting an amendment in the Valuation (Amendment) (No. 2) Bill 2012, which would remove clause M (VII) of the principal Act, which would consider other forms of renewable generation in relation to other Irish properties; if he is aware that new valuations methodology for wind and renewable energy, which came into force on 31 December 2014, has led to a sharp increase in actual commercial rates liabilities, from an average of €6,333 per megawatt of installed capacity to between €19,762 and €20,485 per megawatt, representing an approximate increase of 218%; if he is aware that commercial rates for wind farms are now twice that for fossil fuel plants; his views that this change will hamper the ability to meet European Union climate targets and the renewable energy directive 2009/28/EC; his views on concerns that this could threaten employment and investment in the renewables sector; and if he will make a statement on the matter. [16449/15]

Brendan Howlin (Wexford, Labour)
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The Valuation Office, as part of a programme that will see the valuation of all commercial properties in the State brought up to date, by reference to modern property values, and maintained on a rolling 5-10 year cycle of revaluations as provided for in the Valuation Act 2001, have recently completed the valuation of all commercial properties in Limerick.

The revaluation of commercial properties in a Local Authority area is about redistributing the rates burden with each ratepayer's liability reflecting modern property valuations. A revaluation is not about raising extra revenue from rates, and Local Authorities are prohibited from doing so in the year following a revaluation. The Limerick revaluation will mean a reduction in the rates liability for 65% of ratepayers in that area.

I am aware that the Limerick revaluation has led to large increases in the valuation of wind farms which could, subject to appeal, see the rates liability on those wind farms rise by c.200%. Wind farms in other counties are not directly impacted by this revaluation. I am also aware of the calls for the amendment to the Valuation Act 2001 referred to in the question. The potential impact on the sector, of the revaluation in Limerick was raised at both Dáil Committee and Report Stages of the Valuation (Amendment) (No. 2) Bill 2012, which has since been enacted.  

The Valuation Act 2001 provides for an appeal to the Commissioner of Valuation, a subsequent appeal to the independent Valuation Tribunal and an appeal to the High Court on a point of law. I understand that appeals on the Limerick revaluations have been lodged with the Commissioner of Valuation. The Commissioner of Valuation is independent in the exercise of his functions and I, as Minister, have no function in the valuation of property for rates purposes or in an appeal. This includes expressing a view on the valuation of one type of property compared to another. This is a matter for the qualified staff of the independent Commissioner of Valuation which can be tested using the appeals processes provided. It is important to allow the independent process of valuation and appeal to take its course before a full assessment can be undertaken or any other actions considered, including whether the proposed amendment mentioned by the Deputy would be appropriate or necessary.

The Valuation (Amendment) Act 2015 was signed into law on 23rd April 2015. While there were calls to delay the passage of the Bill to allow further consideration of the issue raised, the main objective of the Valuation (Amendment) Act 2015 is to accelerate the revaluation programme. It would not have been fair on ratepayers in counties that have yet to be revalued to delay measures that will accelerate this process while we await the outcome of appeals and further consideration of the impact of the revaluation on one sector. As was stated in both the Dáil and the Seanad it is acknowledged that the revaluation has implications for the Wind Energy sector and, if after a full analysis of the situation post appeal, a legislative change is considered necessary, then appropriate consideration can be given to the matter at that stage.