John McGuinness (Carlow-Kilkenny, Fianna Fail)
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469. To ask the Minister for Environment, Community and Local Government if he has examined introducing one uniform mechanism for calculating commercial rates; if the exemption of crèches from rates has been examined; his views on allocating a proportion of rates for the mentoring of new local enterprise start-ups and entrepreneurs; and if he will make a statement on the matter. [19258/15]

Alan Kelly (Tipperary North, Labour)
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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 of Valuation has sole responsibility for all valuation matters, including the method of valuation. The levying and collection of rates are matters for each individual local authority. The Valuation Act 2001 is a matter for the Minister for Public Expenditure and Reform. The annual rate on valuation (ARV), which is applied to the valuation for 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.

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 are also a stable source of financing for local government which is not affected unduly by short-term changes in economic circumstances.

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.

An amendment to the law has been included in the recently enacted Valuation (Amendment) Act 2015 to provide for changes to the valuation of certain child care facilities. This is a matter for the Minister for Public Expenditure and Reform.

It is a matter for each local authority to determine its own spending priorities in the context of the annual budgetary process having regard to both locally identified needs and available resources.