Environment Minister Phil Hogan has intimated to John Deasy in the Dáil that business rates could be harmonised “downwards” after Waterford’s local authorities amalgamate next year.
As the new Local Government Bill passed report stage, Deputy Deasy has again argued for changes to be incorporated into the new legislation.
Referring to the harmonisation of rates across councils set to merge in 2014, the Minister suggested to Deputy Deasy that a lowering of rates in Waterford and elsewhere could occur.
“If local authorities are in a position financially to harmonise their rates in one go… we will do so,” the Minister said. “This is about harmonisation of the systems in place downwards, not upwards.
“At the end of the day, it is a matter for the elected members, who have a reserved function on this matter at budget time, to ensure that is the case,” Mr Hogan added.“Any savings that will accrue from the reforms we are undertaking should not impose any additional cost on business.”
Deputy Deasy directly raised the harmonisation issue with Mr Hogan in the Dáil last May, having first addressed it at the Public Accounts Committee a year ago when he pointed to the large variances in annual rateable valuations between the merging councils in Waterford City (€66.22) and County (€69.92), and Dungarvan Town Council (€60.37).
Minister Hogan also indicated he is willing to accept an amendment tabled by the Waterford Fine Gael TD and Dublin Labour deputy Robert Dowds to give discretion to councillors to grant either a full or 50% rebate on rates to owners of vacant business premises. The Bill originally proposed a 50% concession across councils countrywide, “which would be a mistake,” Mr Deasy said.
Another proposal that the Minister is considering is to allow city and county managers waive historical arrears tacked onto a new sale or leasehold.
Mr Hogan agreed with Deputy Dowds at committee stage that incoming businesses shouldn’t be burdened with a legacy debt not of their making, and “I’ve asked the legal people to draft up an appropriate amendment that hits the spirit of what you want.”
A third Deasy/Dowds proposal, namely, a transitional relief scheme that would spread out revaluation increases by rating authorities over three years, is being “constructively” considered by Government officials.