Coffey Calls for Moratorium on Rates Revaluation Process until new Legislation is passed

Fine Gael Waterford Deputy, Paudie Coffey, has called on the Minister for the Environment, Community and Local Government, Phil Hogan TD, and the Minister for Finance, Michael Noonan TD, to introduce a moratorium on the rates revaluation process until the new valuation legislation, which is currently in the Seanad, has been appropriately debated. Deputy Coffey made the call after some businesses in Waterford were hit with rate increases of between 50-100% as a result of the valuation process.

“I understand that many businesses in the manufacturing and hospitality sectors will have their rates reduced and, while this is welcome, we must be cognisant of the needs of the retail sector in this very fragile economic climate. It is crucial that the rates imposed on this sector are not increased so high as to damage the potential for a business to continue to survive, grow or expand.

“The new rate increases in Waterford are on top of rate increases that totalled 50% in the previous decade, ensuring that many businesses are simply not able to cope. We have seen the introduction of a property tax that will help to pay for local services and will assist us in broadening tax base. This should lead to a lessening of the burden on businesses in terms of what they have to contribute towards the cost of local government.

“Consultation is currently taking place with all the relevant stakeholders on the Valuation Amendment Bill 2012, which was introduced into the Seanad in August 2012. That is why I am calling on the Minister to introduce a moratorium on the rates issue until this legislation has been passed. This will give the Oireachtas a chance to influence and amend the legislation so that issues, such as ability to pay, can be examined or a maximum variation could be implemented, as is the case with the restrictions on the new property tax.

“The proposed new rates on businesses will damage the retail economy in Waterford and this is not something that can be tolerated. I have written to Ministers Noonan and Hogan requesting that they take my suggestions on board. This will give retail businesses a period of grace while also ensuring that local authorities receive a steady source of income to fund local services, but not at the cost of private sector jobs.”