Thousands of bed-and-breakfast operations are expected to be excluded from having rates imposed in the new Valuation Bill, which is to be cleared by the Government soon. It is understood it would be impossible to impose rates on B&Bs until the sector was fully registered.
The Irish Hotels Federation has lobbied for B&Bs and guesthouses to be included in the Valuation Bill, which is being prepared by the Minister of State for Finance, Mr Martin Cullen.
The Bill aims to remove deficiencies in the valuation system and to make it more equitable for the ratepayer.
The four Independent TDs who support the Government, Ms Mildred Fox, Mr Jackie Healy-Rae, Mr Harry Blaney and Mr Thomas Gildea recently told the Government Chief Whip, Mr Seamus Brennan, that they would not support the Bill if B&Bs were included. The Independent TDs all live in constituencies dependent on the tourism industry.
Most of the heads of the Valuation Bill have already been cleared by Cabinet. It is understood the Cabinet is likely to be asked not to include B&Bs, because it would be nearly impossible to police a rates system.
Almost 4,000 bed-and-breakfasts are registered with Bord Failte, and another 6,000 are unregistered.
Sources said the Government would commission a report on the sector with a view to registering all B&B and guesthouse operations. It is understood that Mr Cullen has had talks on the matter with the Department of Tourism and Sport, which has responsibility for the sector.
Last night Ms Fox said she had not heard officially that the Government planned to exclude B&Bs from the Bill but she would welcome such a move. "Our views were made clear recently to the Chief Whip," she said.