Check Against Delivery
Seanad Commencement Matter
Thursday 28 January 2016
Senator Cáit Keane
Opening remarks by Minister of State Damien English TD on behalf of the Minister for Justice and Equality, Frances Fitzgerald TD
On behalf of the Minister for Justice and Equality, Ms Frances Fitzgerald, TD, I would like to thank Senator Keane for raising this important issue. I should point out that Ministerial responsibility for the Valuation Office transferred to the Minister for Justice and Equality with effect from 1 January 2016.
I might explain that the issue of local authority commercial rates comes within the remit of the Minister for Public Expenditure and Reform, who has responsibility for fiscal policy, and the Minister for the Environment, Community and Local Government, who has responsibility for the local government system.
The Valuation Office, which now comes under the remit of the Minister for Justice and Equality, is responsible for the implementation and interpretation of the Valuation Act 2001 (as amended) under which commercial rates are levied by the local authorities. The Valuation Office prepares valuation lists of commercial properties, as required by the Valuation Act, and local authorities are obliged to collect rates on properties which are listed. The Commissioner of Valuation is independent in the exercise of his functions under the Valuation Act 2001, and the making of valuations for rating purposes is his sole prerogative. The statute does not accord the Minister any function in this regard.
The Valuation Act 2001 as amended by the Valuation (Amendment) Act 2015 provides that all buildings used or developed for any purpose, are rateable unless expressly exempted under Schedule 4 to the Act. Such exempt buildings would principally include those used for public worship, education and healthcare provided on a not-for-profit basis, and charitable purposes. In general, the Act maintains the long-standing position that all commercial properties – including all commercial childcare facilities such as play schools, pre-schools, crèches and Montessori schools – are liable for rates.
Inconsistency in the approach to the exemption from rates for childcare and education facilities and calls to exempt all such providers were among the issues raised at a number of stages during the passage of the Valuation (Amendment) Act 2015. As a result the Government approved a Seanad Report Stage amendment to the Bill, to insert into Schedule 4 of the Valuation Act 2001 an exemption from rates for properties occupied by parties that provide early childhood care and education on a not-for-profit basis. This amendment was proposed and passed at Report Stage in the Seanad on 20 November 2014. This extension of the childcare and education exemption removed an anomaly that existed where those facilities that provided childcare and education on a charitable basis were exempt but those that did so on a not-for-profit basis were not. Since the legislation was commenced on 8 June 2015, the Valuation Office has been updating the valuation list to give effect to this provision and the vast majority of such occupiers will qualify for this relief from 2016.
ENDS