RATES (NORTHERN IRELAND) ORDER 1975

HL Deb 11 December 1975 vol 366 cc1083-8

4.3 p.m.

The PARLIAMENTARY UNDER-SECRETARY of STATE, NORTHERN IRELAND OFFICE (Lord Donaldson of Kingsbridge) rose to move, That the draft Rates (Northern Ireland) Order 1975, laid before the House on 5th November, be approved. The noble Lord said: My Lords, I beg to move the Motion standing in my name on the Order Paper. The Rates (Northern Ireland) Order 1972 consolidated the law relating to the valuation of property for the purpose of rates, and one of its effects was to bring rates burdens closer into line with those in Great Britain. However, at that time because of contemplated changes in the law in Great Britain, it was not practicable to obtain uniformity on the principles affecting the determination of the net annual value of property containing plant and machinery, or that occupied by public utility undertakings.

My Lords, the main purpose of this order is to bring Northern Ireland into line with Great Britain regarding the assessment of public utilities, docks and harbours, mines and quarries, and plant and machinery. In addition, the order simplifies and makes permanent the present temporary provision for the reduction of rates payable in respect of playing fields occupied by non-profit making organisttions. Article 10 and Schedule 1 of this order exempt the property of electricity or gas undertakings from rates except for dwellings, showrooms and certain administrative offices.

Article 11 and Schedule 2 provide for the assessment of the rateable value of notional hereditaments. Thus the aggregate value of the notional hereditament occupied by the Northern Ireland electricity service will be fixed by a formula based partly on distributing activities and partly on generating activities; similarly for gas undertakings, the assessment will be based on the supply and manufacture of gas. I would add that consultations are taking place now with all interested parties, including public utilities and local authorities. Article 11 and Schedule 2 also provide for docks and harbours in Northern Ireland to be assessed by the same method as that used in England and Wales, and at the same time provide for uniform assessment throughout Northern Ireland. At present Belfast Harbour is assessed on the basis of tonnage of ships, Larne Harbour on an "accountancy" or "profits" method, Coleraine and Londonderry Harbours are exempt, and Warren point Harbour is assessed on the capital cost. The new basis of assessment will not affect the 75 per cent. derating of freight transport hereditaments.

The result of this will be that Belfast, Lame and Warren point harbours will have a somewhat reduced rate burden, whereas Coleraine harbour and Londonderry will now have an increased rate burden. In addition, Schedule 2 makes provision for mines and quarries to be assessed on the same basis as in Great Britain. Article 6 and Schedule 2 empower the Northern Ireland Department of Finance to determine by order the basis of assessment for certain undertakings. These include natural gas undertakings, which at the present time do not exist in Northern Ireland, and canals which although not now operative may become so at some future date.

I will now turn to the question of rateability of plant and machinery covered by the order. In Northern Ireland it has always been considered that plant in the nature of a fixture was rateable. However, recent court decisions have thrown doubt on the view that the law regarding rateable plant in Northern Ireland had a wider interpretation than the corresponding law in Great Britain. Schedule 2 provides the precise classifications of rateable plant and machinery contained in rating law in Great Britain. This new basis of assessment does not affect the continuance of the derating of industrial hereditaments, normally a 75 per cent reduction. What this means in effect is that plant and machinery not listed in the Schedule is not rateable.

Article 4 simplifies and makes permanent the temporary provision, due to end on 31st March next year, for the reduction of rates payable in respect of playing fields occupied by non-profit making organisations. The reduction of 35 per cent. applies to playing fields used for open air games and open air athletic sports. However, the Northern Ireland Department of Finance is empowered to make an order extending the relief to other hereditaments which are used for recreation.

My Lords, I will now briefly deal with some of the minor but important provisions in the order. Article 9 extends the derating of fish farms to shellfish beds. Article 12 provides a safeguard for an agent who is chargeable with rates as "owner" of a hereditament. He is liable only to the extent of money he holds or has held for his principal. Any sums of money he has been compelled to pay in respect of public health expenses are to be ignored in determining the extent of money he holds. Article 13 lays down a complementary rule where an agent charged with public health expenses has paid out money in respect of rates. Relief from rates for property used for charitable recreational purposes was enjoyed prior to the 1972 order but was not clearly affirmed in that order. Article 7 of this order removes any doubts which might exist.

My Lords, in conclusion, I should say that the changes I have outlined have been discussed with representatives of local government, public utility undertakings and other interested parties in Northern Ireland. I commend the order to the House. My Lords, I beg to move.

Moved, That the draft Rates (Northern Ireland) Order 1975, laid before the House on 5th November, be approved.—[Lord Donaldson of Kingsbridge.]

4.9 p.m.

Lord BELSTEAD

My Lords, I should like to thank the noble Lord, Lord Donaldson of Kingsbridge, for explaining the order. Perhaps I may be allowed to put two questions relating only to Article 4 which deals with rating relief for sport and recreation in Northern Ire- land when the Macrory local government reforms were introduced in Northern Ireland in 1972, I think I am right in saying that the direct financial responsibility for the major local government services was transferred to the Northern Ireland Department of Finance. The Department discharges its rating responsibility by striking a regional rate for the whole of Northern Ireland, and then this can be topped up by district rates which can be raised at the discretion of the new district councils. In practical terms this means that for sport and recreation, whereas local authorities in Great Britain have a discretion to give a rate rebate which may be up to 100 per cent., in Northern Ireland the Government, who are responsible, of course, at the moment for the Northern Ireland Department of Finance, must decide the rate relief for sport for the Province as a whole; then under Article 4 we are told this is going to be fixed at 35 per cent.

I would make a plea to the noble Lord, who I understand has been dealing with this matter personally, for at least a 50 per cent. relief for Northern Ireland's sport and recreation. In the present climate in Northern Ireland, surely the importance of sports facilities cannot be over-emphasised; and, incidentally, the work of the Northern Ireland Sports Council, under its chairman, Colonel Shearer, and the director, Mr. Glasgow, should, I think, be recognised. That Council has worked out and has been pushing ahead with plans for a network of sports centres, of which Craigavon and South Antrim, and I think also Newtownards have been completed.

With the level of rainfall which is experienced in Northern Ireland, indoor facilities are especially desirable. I should like to thank the noble Lord, who, I believe, was also personally responsible, for agreeing to the Sports Council's request for rating relief for indoor facilities, which is an innovation. But I put it to the House that the level of relief is really not being pitched high enough. After all, the Government's own White Paper on sport and recreation gives advice to local authorities in Great Britain that relief ought to be pitched at least at 50 per cent. Would the noble Lord give me an assurance that the figures for relief accorded by local authorities in Great Britain will be looked at again, and that the Government will see whether the decision for Northern Ireland in this respect can be reconsidered?

May I add one further point. I am rather concerned, on reading Article 4, that a sports club or society is not going to be eligible for any relief at all if, in broad terms, it makes charges for admission. In 1973 the Government of the day agreed to make a contribution towards the Mary Peters running track, and at that time it became quite clear, when the negotiations were going on with the promoters of the project, what a very great responsibility rests on voluntary organisations who have to meet both capital and recurrent costs for modern sports facilities. That track which bears Mary Peters' name is being built on property which belongs to Queen's University Belfast, and I am sure that has been a prudent way of meeting annual recurrent costs. But so far as I can see, for most community sports facilities which are being supported voluntarily there can be no option at all but to make charges in order to keep going. I should be grateful if, here again, the noble Lord could give me an assurance that this exclusion is not going to bear more harshly in Northern Ireland than it does in Great Britain, that it will be interpreted as leniently as possible. Would the noble Lord tell me, or write to me to give me an assurance, that there is a power in this order to bring any future alterations to the order before Parliament; and will he give me an assurance as well that this will be done if the Government are persuaded that alterations are necessary?

4.14 p.m.

Lord DONALDSON of KINGS-BRIDGE

My Lords, I am grateful for what the noble Lord, Lord Belstead, has said, and I can very easily answer his points on Article 4. I think the first thing to say is that the rate relief in Northern Ireland will be mandatory, as opposed to discretionary. The average relief has been calculated at something under 35 per cent.; under this order it is established at the figure of 35 per cent. This is, on the whole, higher than the average in Great Britain, though in Great Britain some local authorities go up to even 100 per cent., but many go to nil. We have left it open that this can be extended to other facilities which are not open air sports grounds, which is in fact meant to include indoor sports-grounds. This was at the request of Colonel Shearer, who I agree with the noble Lord is a most effective head of the Sports Council. He and his director and others came to lobby us, and we agreed that this order, without actually granting this facility, would leave it open for it to be made.

We have set up a Departmental Committee to look into the whole question and to take such advice as is required to decide whether the35 per cent. should be increased and whether the allowance should be made to other forms of sports facilities. I think that answers all the noble Lord's questions. This order leaves it open for such action to be taken, and the Committee will make a recommendation to the Government over it. I hope that answers what the noble Lord asked me.

On Question, Motion agreed to.