20 October 2008

MoD Rates Debate Continues

As controversy continues over rating 'rebates' for army bases owned by the Ministry of Defence (MoD) in the North West, the Land and Property Services (LPS) has clarified claims about 'errors' in rates estimates and expressed disappointment over reaction from local representatives.

The spokesperson said: "It is disappointing that some local representatives have chosen to blame LPS for this situation when many of the estimates provided have turned out to be within 1% of the final figures.

"Councils were always aware that these figures were estimates and were provided to assist them in their work," the spokesperson continued.

"It has also been reported that LPS are ordering councils to pay back rates monies to the Ministry of Defence (MoD).

"The MoD has appealed the valuation of a number of its properties to the District Valuer and the majority of these appeals are ongoing.

"The MoD, like any other ratepayer, has the right to appeal its valuation assessment and LPS has been advising councils about the potential impact on revenue estimates," the statement said, continuing by noting that: "The majority of these appeals are ongoing, it is unknown at this stage how many will be successful."

The spokesperson also said: "It has been reported that LPS made errors in information it provided to some local councils which have lead to those councils needing to repay monies to central government.

"The information referred to is data provided to councils every autumn to assist them in striking rates.

"This is a highly complex task and the information provides an estimate of what can be raised in terms of rate revenue for the council area.

"The figure is provided to each council to enable them to make informed decisions on the level they strike their rates to match their spending.

"LPS does not direct councils to set rates at a certain level," the statement said.

The statement follows comments by both SDLP and Sinn Féin politicians, most recently by the Sinn Féin MLA for Foyle, Raymond McCartney who said it is "outrageous that the British Ministry of Defence are to receive yet more money from local budgets as part of a rates rebate".

On Friday, he again repeated that Derry City Council has been ordered to pay over £76,000 to the MoD: "This financial mess which sees local budgets being decimated in order to provide a rates rebate to the British MoD is not of local councils' making.

"The Land and Property Service, which falls under the Department of Finance and Personnel (DF&P) has made a series of mistakes in calculations which have affected other organisations, such as local councils, budgets significantly.

"Earlier this week Limavady Council was ordered to pay almost £400,000 in a rebate to the MoD," he alleged.

"The question is now how many local councils are going to be forced to fork out to the MoD in rates rebates," he said, also stating that Nigel Dodds as Minister of Finance needs to come out clearly and say what total amount the MoD are set to receive in terms of rebates will be from all the local authorities and the Assembly."

However, the DF&P has already made clear that the Minister has no direct role in the setting of rates and also said that in the three years prior to 2006/07, Derry received payments of almost £4m despite estimates being lower than the final calculation".

See: MoD Rates Controversy Escalates - Again

(BMcC)