Anne Ferris (Wicklow, Labour)
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1072. To ask the Minister for Environment, Community and Local Government his views on any proposals to reduce commercial rates obligations on wind farm operators, as well as his views on the necessity to seek European Union state aid approval for any such plans, in view of the fact that the renewable energy feed in tariff programme required state aid clearance; if any application has been made to seek approval for state aid to wind farm concerns in the form of preferential commercial rates; and if he will make a statement on the matter. [22166/15]

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 for Valuation has sole responsibility for all valuation matters and the Valuation Act 2001 comes under the aegis of my colleague, the Minister for Public Expenditure and Reform. The Commissioner of Valuation is conducting a programme of revaluation of all commercial and industrial properties throughout the State on a county by county basis. The national revaluation programme is the first general valuation since the middle of the 19th century and it is a significant undertaking. The essential purpose of a revaluation is to redistribute the burden of rates more equitably in line with relative changes in valuations across different classes of properties or individual properties within particular classes or uses. Revaluation results in more consistent and up-to-date valuations for rating purposes and provides a more equitable distribution of valuations across those liable to pay rates. This may inevitably result in an increase in the valuation of some commercial properties and a decrease in the valuation of others.

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 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. As provided for in rating legislation, one ARV is set for each rating authority; there is no provision to allow separate ARVs for different business sectors.

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 Minister for the Environment, Community and Local Government. I am not currently in receipt of a request under this provision.

I would consider carefully any application received for a rate waiver scheme. 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 other businesses in the area by giving a competitive advantage to a certain group through a reduction in costs. As such, it would be necessary to consider State Aid rules in relation to the provision of any such relief. 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.