Irish government to seek solution after court ruling on commercial rates for farm buildings

Ireland's Minister for Enterprise Peter Burke has said a recent High Court ruling on commercial rates for farm buildings is "hugely concerning" for the government. The matter was raised in the Dáil, the lower house of the Irish parliament, and could affect farmers across the country.

What the ruling concerns

The judgement came in a case involving the Castlecor Potato Company and Tailte Éireann, the body that values commercial buildings. Those valuations are then used to set the rates collected by local authorities. There are concerns that, in some cases, agricultural buildings could be included in valuations, which could subject farms to these charges.

The ruling turned on particular facts relating to temperature-controlled storage. However, Michael Collins, a TD (member of parliament) for Independent Ireland representing Cork South-West, argued that the precedent could be applied to a much wider range of farm infrastructure. In his view, it could reach not only potato and onion stores but also malting barley stores and even facilities used by dairy farmers and processors. He warned of years of costly legal disputes and of higher food prices for consumers if substantial new rates liabilities were imposed.

Government response

Burke replied that Agriculture Minister Martin Heydon is in discussions with the Minister for Housing about the implications of the judgement and the precedent it could set. He said the government is aware of the pressures on farmers, particularly in horticulture and tillage, which have seen significant cost increases. The minister said the government does not want unintended consequences and will examine the issue and try to find a resolution.

Collins welcomed the government's acknowledgement of the risks but said it must be followed by action. He called on ministers to move quickly to ensure that agricultural buildings used in the production, storage and protection of food remain outside the scope of commercial rates.