Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

359. To ask the Minister for Housing, Planning, and Local Government his plans to commence section 9 of the Local Government Rates and other Matters Act 2019; the guidance he is issuing to local authorities to offer rates-based incentives for the conversion of suitable vacant commercial properties to residential; and if he will make a statement on the matter. [18017/22]

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Local authorities have a statutory obligation to levy rates on the occupiers of rateable property in accordance with the details in the valuation lists prepared by the Commissioner of Valuation under the Valuation Acts 2001 to 2015.

Legislative provision is made for the refund of rates paid on vacant commercial properties in certain circumstances. The Local Government Reform Act 2014 allows local authorities to offer less than 100% refund and to vary the level of refund for vacant properties at its annual budget meeting. Since the introduction of the Act, a number of local authorities have taken the decision to reduce the percentage refund of rates available. In agreeing budgets for 2022, 19 local authorities made the decision to offer less than 100% refund to vacant properties, ensuring in those local authorities that some rates are paid on vacant commercial properties, helping discourage prolonged vacancy.

The Local Government Rates and Other Matters Act 2019 modernised the legislation governing commercial ratesand contains provision for schemes for the abatement of rates on vacant properties.Section 9 of the Act provides that the Minister may specify the maximum vacancy relief to be applied and that schemes can be made to provide abatement to a specific class or classes of vacant property. The main objective of section 9 of the Act is to discourage commercial vacancy and incentivise occupancy by ensuring all vacant properties pay some rates. This marries with the main objectives in “Town Centres First”.

Amendments are required to address key issues in the Local Government Rates and Other Matters Act 2019. The remaining provisions of the Act cannot be commenced until these issues are addressed. Plans to achieve necessary amendments, commence the legislation and introduce associated regulations were delayed due to the COVID crisis, with the revised aim of commencement in 2022.

Maximising the use of existing housing stock and properties is a critical element of a sustainable housing policy. Action 19.13 of Housing For All commits to commencing section 9 of the Local Government Rates and Other Matters Act 2019. Guidance for elected members on the making of schemes under section 9, and on the flexibility and potential provided by the provision, will be key to empowering them to make schemes that will affect improvements locally to commercial vacancy. It is expected that guidance in this regard will issue to local authorities concurrently with the commencement of the legislation and taking effect of associated regulations.