Rates reform is good news for our small towns and shops – Mulherin

Fine Gael Senator, Michelle Mulherin, believes that new Government reforms to commercial rates will be good news for businesses and our local authorities.

“Income from Commercial Rates is a very important source of revenue for our local authorities, amounting to approximately €1.5bn in current income in 2015, or 37% of their funding.

“My Fine Gael colleague, Minister Simon Covey, has received Government approval for draft new legislation on commercial rates.

“These reforms will aim to modernise and consolidate rates legislation, and will include:

· Provisions to allow the local authorities to introduce rates alleviation schemes to support national and local policy objectives;
· Provisions to allow local authorities to levy rates based on a temporary valuation where the Valuation Office has not completed a valuation;
· The provision of stronger enforcement powers to local authorities to levy and collect rates;
· Minimum charges for vacant commercial premises.

“I hope that our local authorities, particularly here in Mayo use these additional latitude, to encourage businesses to establish themselves in our small towns. Ballina is a prime example. With proper planning by the Local Authority these reforms can play a key part in revitalising our rural towns and villages.

“Reform of our rates system is long overdue; some of the current rates legislation dates back to the early nineteenth century.

“The proposed legislation will allow for temporary abatement of charges for vacant properties, and proposes a 6 month exemption from rates where a property has become vacant to allow the property owner to seek new tenants.

“Where a property is not capable of being beneficial while occupied or used, it will not be liable for rates. Local authorities will have the discretion to further reduce the level of relief.

“These new measures will improve the financial position of local authorities and increase their capacity to continue providing quality services to residents and businesses alike.”