Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

231. To ask the Minister for Public Expenditure and Reform the reduction in rates payable by local authorities and the State as a result of the revision of the global valuation on utilities, in tabular form; if it is appropriate that this measure was taken, considering small and medium-sized businesses cannot avail of these global revisions; and if he will make a statement on the matter. [40440/15]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The position in relation to the global valuation of public utility undertakings is that the Commissioner of Valuation has recently carried out a further valuation of seven utilities as required by section 53(6) of the Valuation Act 2001, as amended by the Valuation (Amendment) Act 2015.

The Commissioner is independent in the exercise of his functions in this regard, by virtue of section 9(10) of the 2001 Act.

These utilities, or their predecessors, were first valued in 2005 and subsequently valued in 2010. In line with the 5-yearly cycle prescribed by section 53(6) of the 2001 Act, the Commissioner has recently completed the 2015 valuations for these seven utilities. The changes reflected in the 2015 valuations arise from changes in the value of each of the respective undertakings since last valued in 2010.

It is important to note that the global valuation process relates solely to the network occupied by the particular public utility undertaking and used by it for its principal objects or purposes such as the supply of electricity or gas or the provision of telecommunications or public transport. Retail units or offices or industrial space occupied by the undertaking but not used by it for its principal objects or purposes are not included in the global valuation. Such properties operated by the public utility are valued in the same manner as the small and medium size businesses to which the Deputy refers.

The basis of valuation of all rateable property throughout the State is "Net Annual Value", as defined in section 48 of the Act. This applies to both public utility undertakings valued on a global basis and conventional rateable properties such as shops, offices and industrial facilities operated by businesses.  The global valuation process is also deployed in other common law jurisdictions and is an efficient mechanism for valuing public utility undertakings with a national or regional network on a five year cycle.  

In relation to the impact of the global valuations on the rates take of local authorities, the position is that under Irish Law, there is a distinct separation of function between the valuation of rateable property and the setting and collection of commercial rates. The amount of rates paid by a ratepayer in any calendar year is a product of the valuation multiplied by the Annual Rate on Valuation (ARV), decided annually by the elected members of the rating authority. In effect, the rating authority determines the total amount of rates liable to be collected from ratepayers in a particular year.

It is too early to forecast the impact of the 2015 round of global valuations on the rates income of rating authorities generally as the 2016 rates have yet to be determined nationwide.