Minister accepts Coffey’s proposed change to rates legislation

Fine Gael Waterford TD, Paudie Coffey, has today (Wednesday) said he is very pleased that the Minister for the Environment, Community and Local Government, Phil Hogan TD, has accepted legislation put forward by Deputy Coffey which will prevent businesses from being forced to pay rates arrears when they have taken over new premises.

Deputy Coffey’s Bill is being included in the Local Government Reform Bill 2013, which is passing through the Dáil this evening.

“This change will have a positive impact on businesses all over the country. Under the old legislation, which dates back to 1838, tenants who left a property with rates due are not be liable and instead the new tenant is forced to pay the rates arrears. This law is still affecting Irish businesses in the 21^st century despite being brought in to effect before the Famine.

“The issue was first brought to my attention by local businesses in Waterford last year; in particular new businesses told me it was acting as a major barrier to taking over new premises in the city. This problem is being replicated across the country.

“The amendment which I put forward, which is now being adopted by Minister Hogan, will mean the new tenants will no longer be liable for the rates arrears of previous tenants. This will allow new businesses to take up new premises and existing businesses to change premises without the fear of having a massive rates bill hanging over them after they move in.

“My rates Bill has already been supported by numerous Local Authorities. The change to the legislation is pro-business and pro-enterprise, and will hopefully assist in job creation across Ireland.   The Minister should be commended for taking account of my Bill and including it the Local Government Reform Bill 2013.

“The unfair practice where new business tenants were held liable for the rates arrears of previous tenants will no longer apply; a move which will improve the business environment in towns and cities around the country.”