Written answers

Tuesday, 4 October 2022

Department of Housing, Planning, and Local Government

Commercial Rates

Photo of Steven MatthewsSteven Matthews (Wicklow, Green Party)
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309. To ask the Minister for Housing, Planning, and Local Government if he will request that local authorities collect full commercial rates on all commercial premises, including vacant units; if he will require a unit to be registered under the Derelict Sites Act 1990 with a view to maximising their usage; and if he will make a statement on the matter. [48544/22]

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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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. This marries with the main objectives in “Town Centres First”, "Housing for All" and "Our Rural Future".

Amendments are required to address key issues in the Local Government Rates and Other Matters Act 2019. The remaining provisions of the Act, including section 9, 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 but it is intended to advance this work this year.

Addressing vacancy and dereliction, and maximising the use of the existing housing stock, is a priority objective of the Government, as evidenced by Housing for All where one of the four pathways in the plan is specifically dedicated to this area.

My Department continues to liaise with local authorities on the implementation of the Derelict Sites Act 1990 (the Act) with a view to improving its effectiveness. In this regard, my Department initiated a review of the Act in November 2021 and has sought initial submissions from local authorities on potential improvements to the legislative provisions and the way they are applied. My Department has now established a focused working group to progress this matter further.

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