Deputy John Deasy asked the Minister for Public Expenditure and Reform if his attention has been drawn to the massive increases in commercial rates due to be levied on businesses in County Waterford on foot of a statutory revaluation of commercial rates in Waterford city and county; and if he will make a statement on the matter.
Reply from Minister Brendan Howlin: As the Deputy will be aware, the national revaluation programme aims to provide up-to-date valuations for individual properties across all economic sectors that are subject to local authority rates. The revaluation process is the mechanism whereby economic changes that take place in the property market are reflected in the valuation lists for rates purposes and in individual ratepayers’ rates liabilities. The national revaluation programme is a priority for Government and is a feature of the Action Plan for Jobs 2012. The programme is particularly important given the significant changes that have occurred in rental values following the economic downturn of recent years. The purpose of a revaluation is to distribute commercial rates liabilities more equitably among ratepayers based on up-to-date values. Following revaluation, there will be a much closer relationship between rental value and commercial rates liability. Even though property values have fallen generally, given that the purpose is to redistribute the overall rates liability, some ratepayers will obtain a reduction while others will experience an increase from the process of redistribution but, overall, revaluation results in a fairer distribution of the rates burden.