John McGuinness (Carlow-Kilkenny, Fianna Fail)
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279. To ask the Minister for Public Expenditure and Reform if he will confirm that, assuming the tripling of rates for wind farms now proposed in County Limerick is repeated across Ireland, the total rates bill for wind farms would exceed total support payments received by wind farms by some 50%, supports which have been approved by the European Commission under state aid rules (details supplied). [26176/15]

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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280. To ask the Minister for Public Expenditure and Reform if a comprehensive cost benefit analysis was carried out weighing the risk of a failure to achieve the State's binding targets on renewables by 2020 against the additional revenue to be gained by the increased rates for wind farms. [26177/15]

Brendan Howlin (Wexford, Labour)
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I propose to take Questions Nos. 279 and 280 together.

The Valuation Office completed its revaluation of Limerick at the end of 2014. This is 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. 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. 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. Valuation lists are compiled for each Local Authority area and are used by Local Authorities in the calculation of rates but the value assigned is only one element in that calculation. The Annual Rate on Valuation, the relative movements in the values of other categories of property and whether the valuation list is made up of properties that are generally increasing in value or decreasing in value all feed into the whether an individual's or a sectors' rates bill increases or decreases. For example the outcome for wind farms in a county where the value of other properties has generally fallen is much different from the outcome in a county where other values are rising.

The appeals process has not concluded its consideration of the recent revaluation in Limerick so one cannot even be certain of what the final outcome will be in that county, let alone making assumptions for the rest of the country. While every effort is being made to accelerate the revaluation process, and the recent enactment of the Valuation (Amendment) Act 2015 is part of those efforts, no additional county will complete revaluation before the end of 2016, impacting on rates for 2017 at the earliest.  

Revaluation is not like the imposition of a new tax where an ex-ante evaluation might be conducted in the form of a cost-benefit analysis. The objective of a revaluation is not about raising extra revenue so the consideration of extra revenue from rates as against the impact that raising it may have on any sector does not arise. The Commissioner of Valuation is independent in the exercise of his functions and I have no role in the valuation of properties for rates purposes. I would not be aware of the emerging outcome of a revaluation before it is finalised and it would be improper to start conducting analyses on the impact on any sector prior to the finalisation of the valuation list. There is an extensive appeals process in place for those who feel that the valuation assigned to a property is incorrect. The legislation 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 and my colleague the Minister for Communications Energy and Natural resources are aware of the concerns raised by the wind farm sector but we are also conscious of the need to respect the appeals processes that are provided and not to pre-judge the outcome of those procedures. 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. As Minister of State Harris stated in conclusion at Report Stage on 31 March 2015. "We should allow the appeals process to take its course. A number of appeals are under active consideration. Let us see what arises from them and fully assess the impact. If there is a need for a policy change, let us consider it".

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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281. To ask the Minister for Public Expenditure and Reform if the Valuations Office or the Government has assessed the potential liability and exposure under European Union law, including under state aid rules, of discrimination against renewable energy plants through affording more favourable treatment to fossil fuel plants, thereby distorting the market. [26178/15]

Brendan Howlin (Wexford, Labour)
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The Valuation Acts 2001 to 2015 provide for the same basis of valuation for rating purposes for all electricity generating facilities whether they are renewable energy plants or fossil fuel plants.

The basis of valuation, whether valuing a renewable energy plant or a fossil fuel plant, is  provided for in section 48 of the Acts, net annual value, that is, the rent for which, one year with another, the property might, in its actual state, be reasonably expected to let from year to year, on the assumption that the probable average annual cost of repairs, insurance and other expenses (if any) that would be necessary to maintain the property in that state and all rates and other taxes in respect of the property, are borne by the tenant of the property.

Section 15(1) of the Valuation Act, 2001 provides that all relevant property in Schedule 3 of the Act is rateable. Paragraph 1(m) of that Schedule refers specifically to electricity generating stations and the various components of such facilities. These include all buildings and structures, ancillary on site developments, roads, reservoirs, jetties, railways, bridges docks, cooling towers, turbines, generators, transformers, boilers, furnaces, tanks, fuel handling equipment, effluent disposal works, including chimneys, dams, weirs, reservoirs, canals (head race, tail race), locks, penstocks, surge tanks, natural gas installations, wind generators and ancillary plant.

Accordingly, there is no discrimination in the treatment of electricity generating facilities for rating purposes between renewable energy plants and those powered by fossil fuels.