NIO considers raising more revenue through rates

The NIO has been warned to conduct careful consultation after the minister responsible for the finance portfolio, Ian Pearson, raised the prospect of garnering revenues for public administration through the rating system.

Former finance minister, and SDLP assembly member, Dr Sean Farren has said that any changes to the rating system must be subjected to "full and open consultation" prior to implementation.

Dr Farren said: "It is essential that any proposals emerging from the review of rating policy are subjected to a full and open consultation, especially with those who may be impacted.

"The issue of industrial de-rating is a major one which must be handled in a manner which provides security for the manufacturing sector. It should be taken forward in a way which looks at the entire issue of support for industry, both new and existing industries."

Mr Farren raised his concerns after the NIO announced the publication of a First Findings Report, which has emerged from the public consultation on the Review of Rating Policy. Mr Pearson said that while more analysis is needed, particular aspects for reform of the system can be implemented.

Mr Pearson said: "There are some aspects of rating policy on which quick decisions are feasible because, while they are capable of providing some necessary levels of additional revenue, they do not prejudice or pre-empt decisions on longer term policy. And they are feasible because they are aspects on which, in broad terms, a degree of consensus has started to emerge."

Mr Pearson said that the issue could be tackled in two ways – through vacant property rating and industrial de-rating.

Many respondents to the Review favoured the rating of vacant properties as a useful incentive against buildings falling into dereliction. The majority of respondents also supporting this step favoured the policy used in Great Britain where a fee less than full rating is levied, following an initial exemption period.

He added: "I have asked that further work be carried out on the mechanics and timescale for the removal of the exemption of vacant property from the rating system in Northern Ireland."

The minister said that industrial de-rating was "not achieving its objectives", as it is a "blanket measure". He said that there was little support for continuing the present system as it stands and reform must be initiated.

Mr Pearson will meet with the CBI to discuss the issue further.

(GMcG)