Terence Flanagan (Dublin North East, Renua Ireland)
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156. To ask the Minister for Environment, Community and Local Government if he or his officials have assessed the impact of the small business rate relief scheme in Northern Ireland; if consideration has been given to introducing a similar scheme here; and if he will make a statement on the matter. [33603/15]

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 levying and collection of rates are matters for each individual local authority. The annual rate on valuation (ARV), which is applied to the valuation of 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.

I am aware of the Small Business Rate Relief Scheme in Northern Ireland. Within this jurisdiction, 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 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.

Recent developments have seen some local authorities introduce locally designed business incentive schemes which promote 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, no Ministerial sanction is required for the setting up of these schemes.

I am aware of the continued need to restrain the costs on businesses. My Department has in recent years requested local authorities to exercise restraint in setting, and where possible to reduce, ARVs and they have responded positively in this regard. The national average ARV decreased each year from 2010 to 2014; 2015 is not directly comparable due to the local authority mergers and the necessity to harmonise rates across new local authority areas.

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.