Draft legislation to change the existing local authority rate valuation system is set to be brought before the Government for consideration before the end of the year, according to Mr Martin Cullen, Minister of State at the Department of Finance.

Opening the Valuation Bill Information Seminar at Dublin Castle, he said: "The reforms recommended by the interdepartmental committee and reflected in the proposals for legislation are designed to improve and streamline the operation of the valuation system, remove deficiencies, to bring it more into line with the contemporary environment and to make the system more transparent and equitable for the ratepayer."

Mr Cullen maintained one of the key reasons for new valuation legislation was to allow a revaluation of commercial property to take place.

"A revaluation would allow a uniform and equitable valuation base to be established and anomalies to be removed. It would also allow a return to full values rather than the confusing fractions that are used at present," he said.

The level of rates is a contentious factor with many businesses and Mr Cullen said: "It is important to stress that it is not designed to increase the rates income."

In order to put this beyond doubt, he said it was intended that there would be provision "to cap the rate in the pound when the revaluation takes place". The legislation is also to allow for regular revaluations, every five to 10 years.

While acknowledging that the levying and collection of rates was a function for local authorities, Mr Cullen said the proposed legislation "aims to provide a fair and equitable base for the rates system".

The interdepartmental committee recommended new legislation to make the system more transparent and equitable for the ratepayer. Equity would be improved by providing that ratepayers would be notified of the Valuation Office's proposed valuation before it became effective for rating purposes. Under the current system, a ratepayer or rating authority can appeal a determination by the Valuation Office first to the Commissioner of Valuation and second to the Valuation Tribunal, after it has comes into effect. This facility will continue, he said, "in addition to giving ratepayers an opportunity to make a submission to the Valuation Office, if they wish, about the valuation". The committee would also like to see simplification of procedures and a commitment to a rapid response from the Valuation Office.