Jennifer Whitmore (Wicklow, Social Democrats)
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501. To ask the Minister for Housing, Planning, and Local Government if local authorities have the remit to make derogations or exemptions with regards to commercial rates in certain circumstances; and if he will make a statement on the matter. [29539/22]

Peter Burke (Longford-Westmeath, Fine Gael)
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Local authorities are required by legislation 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 annual rate on valuation (ARV) is decided by the elected members of each local authority in the annual budget and its determination is a reserved function. The ARV is then applied to each property’s valuation to obtain the amount payable in rates.

Local authorities work closely with ratepayers experiencing difficulties with the payment of commercial rates. In this regard, local authorities may facilitate the payment of commercial rates by instalments, and work with businesses to put in place flexible payment options.

Under the Local Government (Rates) Act 1970 a rating authority may make and carry out a scheme, providing for the waiver by the authority of all or a portion of commercial rates due by ratepayers in respect of a specified class or classes of property. The making of such a scheme is subject to the consent of the Minister for Housing, Local Government and Heritage. No rate waiver schemes have been consented to in respect of commercial property.

Some local authorities have introduced locally designed business incentive schemes which promote the use of vacant commercial property. Such schemes rely upon Part 9 of the Local Government Act 2001 which provides that the functions of local authorities include providing grants, loans guarantees or other financial aid to promote the interests of the local community, including economic interests. Unlike rates waiver schemes, no Ministerial sanction is required for the setting up of these schemes.

Section 15 of the Local Government Rates and Other Matter Act 2019 allows a local authority to introduce rates alleviation schemes to support the implementation of policy objectives, including: local economic and community plans; objectives contained in Development Plans and Local Area Plans; and national planning policies. Section 15 is currently not commenced.

Only a portion of the Local Government Rates and Other Matters Act 2019 has been commenced. Preparations have been delayed due to the impact of the COVID crisis and consequent work on the government funded rates waivers, which required to be prioritised. It is intended to further advance this work this year.