Sammy Wilson (DUP)

I am glad that there was an interpretation, but I think that I would have guessed that it was Question 1.

The rating of empty homes is likely to raise between £6 million and £8 million in additional regional and district rates revenue when it is established. However, the experience of the rushed introduction of the rating of vacant non-domestic properties in 2004 suggested that the amount that would have been raised through the rating of empty homes in 2010-11 is likely to be significantly less than that amount.

Land and Property Services (LPS) is experiencing the same problems as the Rate Collection Agency in compiling a list of reliable owners in time for the April 2010 introduction of rating of empty homes. Therefore, it is likely that just over half the revenue that the measure is capable of raising annually would have been raised, and the postponement of one year has the advantage of allowing LPS sufficient time to finalise the list.

Sammy Wilson (DUP)

I am very pleased that I anticipated the Member’s supplementary question. There is no doubt that one of the reasons was that we did not have a full list of vacant homes. I hope that council building control departments will help Land and Property Services to identify such properties. The additional reason was that there would have been implications in introducing rating on vacant homes, given the state of the housing market. It was decided, therefore, that we should postpone its introduction.

Wallace Browne (DUP)

Would the Minister agree that it has become increasingly difficult for councils to set a budget for the financial year because of the default in the collection of rates? What percentage of rates has been collected by Land and Property Services in each council area, and what action has been taken to recover unpaid rates?

Sammy Wilson (DUP)

I tend to have certain facts given to me by the Department before I come to Question Time. However, I do not have the detail for which the Member asked in relation to the percentage of rates that is not collected in each council area. However, the amount of rates that has not been collected has increased, and probably sits at about £130 million, which is quite a high sum. Despite our taking an increasing number of people through the courts to recover rates, the sum has increased. That is partly due to the recession and partly due to the fact that work needs to be done on rates collection.

As for identifying properties on which rates are not collected, building control carried out an exercise in the Belfast City Council area that found that many properties in the city that were thought to be vacant were not, in fact, vacant. That exercise increased the rates base by about £4·2 million. That is the way forward, and I would like to see LPS working with local councils to ascertain which properties are not paying rates and whether they should be.

David McClarty (UUP)

I remind Members from all sides that supplementary questions should not be read.

Mark Durkan (Social Democratic and Labour Party)

The Minister referred to the introduction of the rating of non-domestic properties, which was never introduced in Scotland. Is the Minister aware that the Chancellor has introduced new reliefs in England in the context of the downturn, and does he recognise that, through no fault of their own, many owners cannot let their commercial properties? Those properties are facing deterioration because money that could be spent on maintaining them has to go towards rates.

Sammy Wilson (DUP)

Although I accept the Member’s point, we are evaluating the rating of vacant non-domestic properties. We have sought the views of a wide range of people, which we are now considering. However, lest I give the impression that we are less generous in Northern Ireland than in other parts of the United Kingdom, the rating of non-domestic properties in Northern Ireland operates at a 50% level, whereas a 100% level operates in the rest of the United Kingdom. Moreover, rates for manufacturing industries are capped at 30%. There are differences in the rating systems, and, therefore, a comparison cannot be made between here and the rest of the United Kingdom.