Written answers

Tuesday, 12 June 2018

Department of Housing, Planning, and Local Government

Commercial Rates

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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1285. To ask the Minister for Housing, Planning, and Local Government further to Parliamentary question No. 2074 of 11 September 2017, if his attention has been drawn to the wide variation in the capacity of local authorities to collect commercial rates; if his Department has considered offering assistance to local authorities to improve their capacity to maximise the important revenue stream to improve local services; and if he will make a statement on the matter. [24464/18]

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, 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.

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 Many of the provisions are outdated and not suitable for business trends in the modern era. My Department is developing proposals for a consolidated Rates Bill to modernise and consolidate the legislation in this area. In this regard, the Government approved the drafting of a Rates Bill in April 2017. It is currently with the Office of Parliamentary Counsel for drafting, with a view to its introduction as soon as possible.

The Debt Management Project Implementation Board, on which my Department and the Local Authority Sector were represented, was established by the Minister for Public Expenditure and Reform in February 2015, to progress the recommendations of the Debt Management Review, which was published in 2014. As part of this process, the local authorities undertook a range of work to improve collection levels including;

- Setting targets for reduction of arrears of commercial rates in each local authority;

- Improved reporting of rates debts in local authority financial statements;

- Introduction of strengthened policies relating to debt collection; and

- The development and rollout of a training and education programme.

As part of this process, the local authority sector prepared a business case for stronger enforcement powers in the collection of commercial rates. This business case was endorsed by the Project Board. Provision for strengthened enforcement powers for local authorities is included in the Rates Bill currently being drafted.

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