Commercial rates reform
Senator Noone highlights the Valuation Bill as an opportunity to reform commercial rates and consider a levy on large retail multiples.
It is important to note that voting will take place between 8 a.m. and 9 p.m. tomorrow, not between 7 a.m. and 9 p.m.
I refer to the Valuation (Amendment) (No. 2) Bill 2012. It presents an opportunity to undertake innovative reform of our commercial rates system. A levy on multiples was introduced in April 2012 in Northern Ireland, which has become known colloquially as the "Tesco tax". The change introduced brings about a re-evaluation of rates on commercial premises with a rateable value in excess of £500,000.
It affects only 76 large shops and would help the problem of smaller businesses here because it redistributes the rates in order that there can be reductions to smaller business. In the North 8,200 smaller businesses have benefited from a 20% reduction in their rates and 24,000 receive help with the rates. The legislation is designed to give effect to a levy on large retailers to raise revenue to fund the reduction of rates for smaller businesses which are the heartbeat of our small towns and compensate for what has happened in many towns whereby large retailers have been positioned at the edges of towns, thereby taking the life and soul out of towns. I do not know if this is necessarily the answer and I do not know what the Minister for Finance would have to say about it as regards the South and how it would suit us. It is a good idea on the face of it and warrants some discussion. I have written to the Chairman of the Joint Committee on Finance, Public Expenditure and Reform with a view to having it discussed there and, if so, if we could have a presentation from those in the North who have experience in this area to ascertain whether it could be a real benefit for smaller business in this jurisdiction.