Rates (Hansard, 2 March 2004)

§ Mr. Trimble
To ask the Secretary of State for Northern Ireland what research has been conducted into the impact the removal of rates relief on manufacturing premises will have on manufacturing industries; and if he will make a statement. [156460]

§ Mr. Pearson
Our assessment on the likely impact of the phasing out of industrial derating on the manufacturing industry in Northern Ireland (NI) came from a variety of different sources; for example, studies by DTZ Pieda, Invest NI as well as evidence presented during the public consultation exercise in 2002 by the DETI and DFP Assembly Committees, the CBI and local economists. The policy paper published in April last year included the Regulatory Impact Assessment, New TSN and Equality Impact Assessments. All this evidence was summarised, analysed and considered objectively and the various options were discussed openly with representatives of the business community before a final decision was made.

§ Mr. Trimble
To ask the Secretary of State for Northern Ireland what research has been conducted into the impact levying rates on vacant buildings will have on investment in deprived areas; what proposals there are for exemptions; and if he will make a statement. [156461]

§ Mr. Pearson
The decision to rate vacant non–domestic property was informed by an analysis of the potential impact on deprived areas. It concluded that the impact is likely to be positive because such property tends to be concentrated in deprived areas and the effect of the measure will be to encourage owners to bring them back into use and occupation. This New TSN analysis was published with the policy paper in April 2003.
In line with the outcomes of the consultation exercise in 2002, the exemptions to the vacant rate will largely mirror those in the rest of the UK. They will cover the situation where the occupation or use of the property is restricted or prohibited in some way, or where the person would be liable only as a proxy for someone else. Property with a net annual value of less than £2,000, property vacant for less than three months, and other properties such as listed buildings will also be exempt. It is also intended to exempt industrial property, that is factories, mines and quarries, from the vacant rate. However, standalone warehouses will not be exempt because, unlike industrial property, they can be readily converted and put on the market for sale or letting to a range of buyers or tenants.