Labour Senator Lorraine Higgins has pressed the Minister for the Environment, Community and Local Government to clear up any uncertainty in the Local Government Bill, whereby rates may be charged on commercial properties which are closed down and no longer trading.

Speaking in the Seanad Senator Higgins said: "To think that business owners in rural areas, which have a large number of vacant premises, would have to pay rates even though the units are not being rented out would be wrong.

"I would appeal to the Minister for the Environment, Community and Local Government to clarify the provision in the Local Government Bill regarding rate retention by a local authority and if he will devolve responsibility to a local authority to make the decision on the potential for application of rates on closed buildings. Local authorities are best placed to decide this given they are most familiar with particular circumstances in our county towns. To charge property owners rates on premises in rural towns in the West of Ireland, which have large number of vacant commercial units, would be ludicrous given the demand for them are just not there at present".

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In response Minister Phil Hogan said: "This provision should not be interpreted as a further cost on business". He gave a "commitment to the House to revert to the matter again as the Bill makes its way through the Oireachtas to ensure that there are no unintended consequences in how the provision would work in practice".

Senator Higgins said: "Places like Dublin, Cork and Limerick have demand for commercial units, so it is arguably fair to apply a 50% rates bill on unoccupied commercial premises in those areas. It is very different in rural areas where supply exceeds demand. That is the difficulty in my own area of east Galway, which is why I brought this matter before the Seanad."

(CD/MH)