Fermanagh District Council is leading the campaign for a reversal of the present capping figure of £500,000 by way of capital value as the maximum on which rates are paid. The Council's argument is that anyone who is fortunate enough to own capital assets above the half million pound mark should pay more.
The Council is among the 42 representative organisations and 77 ratepayers who responded to the public consultation on the domestic rating system, the Report of which was published yesterday. Of those who responded, 24 supported the 'cap' and 18 opposed it, only six of whom were organisations.
By contrast, 15 organisations, including the Council, opposed the 'cap'. Fermanagh Council found itself in good company, among others objecting were Advice NI, the General Consumer Council and the NI Anti-Poverty network.
A spokesman for the Council explained its stance: "The £500,000 capital value 'cap' means that the rates that should have been payable by anyone above that have to be paid by everybody else. The question now is whether the 'cap' will be limited to £500,000 or whether it will come down. If the 'cap goes up, then people will pay a bit less."
The Report was launched by the Minister for Finance and Personnel, Peter Robinson, who said it would provide a sound basis for moving forward.
"My Department, along with the Committee for Finance and Personnel, will be absorbing what has been said and considering the evidence gathered through this process in detail. This will inform the next stage of the review, which will involve the development of options for more effective, sustainable and consensual policies, which is essential for the outcomes to pass through the Assembly."
He described the findings within the Report as providing a good foundation for future decisions by the Executive of the Northern Ireland Assembly, and he suggested that the fact that this consultative process was put into effect within weeks of restoration of the devolved institutions demonstrated his commitment to address the issue.
He promised that the review would be undertaken quickly in order that some changes could be introduced before next year's rates bills go out.
"I will be examining the issues raised as a matter of priority in the weeks ahead," he stated, "and later in the year, I will be presenting options for change to my ministerial colleagues in the Executive. Rest assured, we will not be proposing any changes without considering views expressed through this consultation.
"Although people see devolved government as more accessible, that counts for nothing if their views are not heeded through consultation processes like this. I would like to thank everyone who responded to this consultation for their valuable contribution in delivering change for the better."
Apart from Fermanagh Council, there were some big hitters among those who responded. One of them, Professor Birrell, submitted that rates should contain an element of property wealth tax and a charge for services. He was supported in this by the Fair Rates Campaign, who felt that there was a need to strike a balance between those who lived in expensive houses and used only minimal services, and those living in less costly homes consuming a greater level of services.
There was some concern among those responding at rapidly rising capital values and how this would lead to exorbitant rates bills. However, the Department insisted that the factor that would determine the outcome of an individual's bill would be whether the value of his/her house had gone up by more or less than the average.
One interesting issue that people focused on is that, at the moment, no rates are paid on vacant domestic properties. By contrast, vacant domestic properties in mainland UK are liable to a Council tax at 50% and, over here, non-domestic property has been rated at 50%.
Fermanagh District Council and the Ulster Unionist Party shared the view that the rating of domestic property would be a significant tool in encouraging owners/developers to act on or sell those empty properties.
The report refers to the Low Income Rate Relief Scheme, which was introduced in April this year. It provides assistance to ratepayers in low income households who are just beyond the Social Security Housing Benefit threshold or who are receiving partial Housing Benefit because their income exceeds the allowed amount.
During the consultation period, the website was accessed on over 33,692 occasions.
