Brendan Griffin (Kerry, Fine Gael)
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152. To ask the Minister for Housing, Planning, Community and Local Government if he will consider introducing a reduction in commercial rates for rural pubs and shops in view of the decline in business over the past ten years; and if he will make a statement on the matter. [6293/17]

Simon Coveney (Cork South Central, Fine Gael)
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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 pursuant to the Valuation Acts 2001 to 2015. 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.

Under Part 5 of the Valuation Acts 2001 to 2015, the Commissioner of Valuation is conducting a revaluation of all commercial and industrial properties throughout the State. The Valuation Acts come under the aegis of my colleague, the Tánaiste and Minister for Justice and Equality. In a revaluation all rateable property within a rating authority area is revalued so as to reflect changes in value due to economic factors, differential movements in property values or other external factors such as infrastructural changes in the vicinity of a property and changes in the local business environment. Following revaluation there is a much closer and uniform relationship between contemporary rental values of property and their commercial rates liability. In essence, the exercise aims to ensure that each ratepayer bears a fair share of the rates burden relative to the modern rental value of the property that they occupy.

To date, revaluations have been completed in South Dublin County Council, Fingal County Council, Dún Laoghaire-Rathdown County Council, Dublin City Council, Waterford City and County Council and Limerick City and County Council. I understand that revaluations in ten local authorities, including Carlow, Kildare, Kilkenny, Leitrim, Longford, Offaly, Roscommon, Sligo, South Dublin and Westmeath County Councils are due to be completed this year with valuations to take effect for rates purposes from 2018.

Commercial rates form an important element of the funding of all local authorities. However, the legislative basis for the levying of rates is spread over a number of enactments, some dating back to the 19th century. Many of the provisions are outdated and not suitable for business trends in the modern era. I have asked my Department to develop proposals for the preparation of a consolidated Rates Bill to modernise and consolidate the legislation in this area. Among the measures being considered for the General Scheme of the Bill are provisions to allow a local authority to introduce rates alleviation schemes to support, inter alia, urban regeneration and rural development.