Micheál Martin (Cork South Central, Fianna Fail)
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75. To ask the Minister for Justice and Equality if her attention has been drawn to the effects commercial rates are having on a small family hotel (details supplied) in County Wexford; her plans to address this issue in general; and if she will make a statement on the matter. [15043/17]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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The Valuation Acts 2001 to 2015 provide for the valuation of all commercial and industrial property for rating purposes. The Commissioner of Valuation is independent in the performance of his functions under the Acts and the making of valuations for rating is his sole responsibility. I, as Minister for Justice and Equality, have no role in decisions in this regard. 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 payable in any calendar year is a product of the valuation set by the Commissioner of Valuation, multiplied by the Annual Rate on Valuation (ARV) decided annually by the elected members of each local authority.

With regard to valuation, Section 28(4) of the Valuation Act 2001, as amended, provides that a revision of valuation to a particular property can be undertaken only if a material change of circumstances has occurred since the valuation of the property was last revised. A material change in circumstances is defined as a change of circumstances, which consists of a new building, a change in value due to structural alterations of an existing building, total or partial demolition of a building or a sub-division or amalgamation of relevant property. The definition does not allow for a revision of valuation where the change in value is due to economic factors, differential movements in property values or other external factors. I am advised by the Valuation Office that if such a material change, within the definition in the Act, has occurred in relation to a specific property, the occupier can apply for a revision of the valuation in respect of the premises for a prescribed fee of €250. The relevant application form, Form R1, is available on the Valuation Office's website, www.valoff.ie, along with associated explanatory documentation.

Where the Valuation Office proposes to enter a new valuation or amend an existing valuation on a Valuation List, there is an extensive process available to cater for ratepayers who may be dissatisfied with the proposed valuation they receive from the Valuation Office. A dissatisfied person can make representations to the Valuation Office within 40 days of the date of the issue of the proposed valuation certificate. The Valuation Office will consider any such representations and may or may not change the proposed valuation depending on the circumstances of each individual property. If any ratepayer is still dissatisfied with the final valuation to be placed on their property following consideration of the representations, they have a right to lodge a formal appeal with the Valuation Tribunal, which is an independent statutory body established for the purpose of hearing appeals against decisions of the Commissioner of Valuation.

Having a modern valuation base is very important for the levying of commercial rates on a fair and equitable basis across all economic sectors. This has been the policy of successive governments for many years and is the express purpose of the National Revaluation Programme now being rolled out by the Valuation Office. The Valuation Acts provide for the revaluation of all rateable property within a rating authority area so as to reflect changes in value due to economic factors such as business turnover, differential movements in property values or other external factors and changes in the local business environment. The Valuation Office is currently engaged in a national revaluation programme, the immediate objective of which is to ensure that the first revaluation of all rating authority areas in over 150 years is conducted across the country, as soon as possible, and on a phased basis. This is a welcome and positive development which is long overdue and on which considerable progress has been made to date. Revaluation is an important instrument in addressing historical anomalies in relation to commercial rates for both urban and rural properties and between particular classes of property within a local authority area. In fact, the general outcome of the revaluations conducted to date by the Valuation Office has been that about 60% of ratepayers have had their liability for rates reduced following a revaluation and about 40% had an increase, a pattern which is most welcome and is expected to be replicated elsewhere as the programme advances.

The current phase of the national revaluation programme is known as "REVAL 2017" and covers the revaluation of all rateable properties in counties Longford, Leitrim, Roscommon, Westmeath, Offaly, Kildare, Sligo, Carlow and Kilkenny where a revaluation is being undertaken for the first time since the nineteenth century and which also includes the second revaluation of the South Dublin County Council area. The revaluation in these counties will be completed in September 2017 and become effective for rating purposes from 2018 onwards. The programme will then be extended to other counties including County Wexford which is tentatively listed for inclusion in the next phase of revaluation to be commenced this year.

With regard to the specific case referred to by the Deputy, I am advised that it is not the practice of the Valuation Office to comment on the specifics of individual properties. I am advised that the property in question was last subject to a revision of valuation in 2000, at the request of Wexford County Council. At that time, the existing valuation was considered to be adequate and was not revised. However, as outlined above, it would be possible for the owners of the property in question to apply for a revision of valuation if a material change in circumstances has occurred in the interim.