County council fails to avoid €380,000 city council bill

CORK County Council has failed in its bid to dodge a €380,000 rates bill from its neighbour, the city council, after an argument questioning the essence of the Irish State.

Its attempt to avoid the sizeable annual payment floundered after a ruling that said local councils are not agents of the State.

The Valuation Tribunal said Cork County Hall, sitting within the Cork City Council’s boundary, was independent of government.

In 2008 the rates bill for County Hall will be €381,056, an increase of €13,156 from last year.

Had the council convinced the tribunal of its status under the umbrella of the State it would have gained a special exemption.

On behalf of the council Brian Murray argued the towering building on Carrigrohane Straight was “occupied by the State”.

“What was being sought was an acknowledgment that certain categories of public bodies were so close to the ‘State’ as to equate with the State for [rate] exemption purposes,” said the tribunal’s synopsis of his argument.

It continued: “Mr Murray submitted that the functions, powers and duties [of a local authority] were in essence the duties of the State.”

The tribunal ruling was published on December 17 after an October hearing.

The council argued local authorities had elected forums, answered to a minister and implemented laws like the Planning Act.

Tribunal chair John L O’Donnell was not swayed. His judgment accepted the views of Brendan Conway, representing the Chief State Solicitor’s office.

Mr Conway said local authorities were ultimately instruments of the State — not the State itself — and had secondary status distinct from central government. Plus the State delegated responsibilities to local authorities through legislation but kept them at arm’s length.

“It was a matter of fact, Mr Conway said, that the exemption was extended to the ‘State’ and the ‘State’ simpliciter [alone].

“If, for example, the State carried out central bin collection, which it does not, then that function would be regarded as being carried out at state level.

“It was this delegation [shipping of responsibility]... that took the matter out of the State’s remit,” the tribunal’s synopsis said. It decided national bodies, implementing central government policy, are justifiably exempt from rates.

However, Cork County Council has no central government functions.

“Cork County Council is clothed with such a degree of autonomy as to distance itself from the character of ‘State’,” the tribunal said.

Yesterday, the council said it is considering appealing the judgment to the High Court.

As it stands the county council will have to continue paying rates to the city council on properties inside the city boundaries.

Rates revaluation: Set for national roll-out

RATES are the fees paid by businesses for local authority services based on the rental value of the land they occupy.

Every commercial and industrial enterprise in the country is liable to pay rates unless it can argue it is carrying out the functions of the State.

The rental value is multiplied by a figure set by each council.

There are also exemptions for religious buildings, burial grounds, groups dedicated to educating the poor, public schools and hospitals that do not make a profit.

Recently, the Valuation Office published its first revaluation of rates since 1865 with a pilot reassessment of land values in South Dublin County Council. The new rates, based on up-to-date land values, will see the 6,274 commercial properties in South Dublin County paying revised fees.

The revaluation will be rolled out nationally overtime.