Burke: Commercial rates ruling 'hugely concerning' for govt
Minister for Enterprise Peter Burke has said that a recent High Court ruling on commercial rates on farm buildings is "hugely concerning" for government.
He was referring to a recent judgement from the court in a case involving Castlecor Potato Company and Tailte Éireann, which valuates commercial buildings, with the valuations then used to set taxes collected by local authorities.
The judgement has given rise to concerns that agricultural buildings could be included in valuations in some cases, possibly subjecting farms to those taxes.
The issue has been raised in the Dáil by Independent Ireland TD Michael Collins, who claimed that the ruling could have implications beyond the case that came before the courts.
While the ruling turned on particular facts relating to temperature-controlled storage, Collins said the precedent it creates risks "being weaponised against a much wider range of essential farm infrastructure".
The Cork South-West TD said: "If this precedent is allowed to stand, it could potentially be applied not only to potato and onion storage facilities but to other agricultural and food-production buildings that use temperature controls or stores, including malting barley stores and even facilities used by dairy farmers and processors.
"The last thing Irish farmers need is the spectre of Tailte Éireann banging down their doors to assess them for new commercial rate liabilities. We know that what begins with potato and onion stores today will not end there once yet another source of rate’s revenue has been identified," he added/
"If substantial new rates liabilities are imposed, those costs will ultimately have to be carried by consumers through higher food prices."
Collins warned that the court's finding could trigger "years of costly legal disputes" as farmers and producers seek to challenge assessments and defend against "an unprecedented expansion of rating powers".
Responding to Collins, Minister Burke said: "This has been a determination by the courts which is hugely concerning for government.
"I know [Minister for Agriculture] Martin Heydon is in discussions with the Minister for Housing in connection with the implications from the judgement, and critically the precedent that it could potentially set," Minister Burke added.
"We are very much aware of the pressures that our farmers are [under], and particularly, no more is that acuate as in the horticulture sector, and those in the tillage sector, which have seen very significant cost increases," he said.
"We do not want to see any unintended consequences as regards a judgement that has come from the judiciary.
"Obviously we are very respectful of any judgement, but potentially it's up to us, the government, then to act on implications the judgement has given," Minister Burke said.
"We will absolutely undertake to examine this and try to find a resolution, because as someone who comes from a farming background myself, I'm absolutely aware of the challenges of the farming community," he added.
"We don’t want farmers or those in horticulture having inspectors calling out and trying to fight with the state in relation to evaluation for rates.
"That's not the intended spirit of the government and it's something we will try and resolve," the minister said.
Deputy Collins said that this acknowledgement from government must be followed by action.
"It is welcome that Government accepts the dangers posed by this precedent. The question now is what they intend to do about it. Farmers require certainty and protection," he said.
Collins called on the government to move quickly to ensure that essential agricultural buildings used in production, storage and protection of food remain outside the scope of commercial rates.
