Micheál Martin (Cork South Central, Fianna Fail)
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539. To ask the Minister for Housing, Planning, Community and Local Government if he is reviewing the way in which rural public houses are being charged for their commercial rates, particularly if they have down sized their square footage to decrease costs as a result of less business on the premises; and if he will make a statement on the matter. [24340/16]

Micheál Martin (Cork South Central, Fianna Fail)
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540. To ask the Minister for Housing, Planning, Community and Local Government his plans to allow rural public houses decrease their commercial rates; and if he will make a statement on the matter. [24341/16]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 539 and 540 together.

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 Acts 2001 to 2015. The Commissioner for Valuation has sole responsibility for all valuation matters including procedures for the revision of the valuation of property set out under the Valuation Acts 2001 to 2015. The Valuation Acts 2001 to 2015 come under the aegis of my colleague, the Minister for Justice and Equality.

The levying and collection of rates is a matter for each individual local authority. The annual rate on valuation (ARV) is applied to the valuation of each property as determined by the Valuation Office, to obtain the amount payable in rates. The ARV is decided by the elected members of each local authority as part of the annual budget. Rates income is a very important contribution to the cost of services provided by local authorities such as roads, public lighting, development control, parks and open spaces. Locally elected members adopt the annual rate on valuation they consider necessary in order to provide the required services.

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 and 2016 are not directly comparable due to the local authority mergers and the necessity to harmonise rates across new local authority areas.