[Article] NTR in court battle over bid to cut rates

Victor

http://www.timesonline.co.uk/newspaper/0,,2765-2300815,00.html

NTR in court battle over bid to cut rates
Richard Oakley and Dearbhail McDonald

NTR, the company that Dublin motorists love to hate, is being taken to the High Court in a row over its bid to reduce the rates it must pay to two local authorities by just over €2m.

The owner of West-Link Toll Bridge, which operates the controversial M50 toll bridge that may be acquired by the state in a €1 billion deal, is being challenged by the state’s Valuation Office after the firm successfully fought a €6.06m rates bill, getting it reduced to €3.7m.

The toll bridge raises revenue of more than €30m a year for NTR, which earned profits of €22.2m in the 15 months to March.

The case, which involves an appeal by the Valuation Office against a decision by an independent tribunal, has implications for the local authorities involved, which levy rates on NTR because its infrastructure is in their territories.

Fingal county council is set to lose €1.9m a year if the High Court does not rule in favour of the Valuation Office, having already foregone that amount in 2005. South Dublin County Council would see its commercial rates income reduced by more than €409,000.

The dispute centres around a claim by the bridge owners that money it is contracted to pay the government from the tolls it collects should not be included as gross income when its rates are assessed. The row dates back to November 2004 when a decision was made to recalculate the amount the West-Link company should pay in rates after new work on the bridge was completed.

The Valuation Office, which assesses rates, raised the firm’s bill from €3.44m to €5.1m, with the proceeds to be divided between the two councils.

NTR appealed the decision and the case was then handled by the Commissioner of Valuation. Following his review in March last year, the amount payable was increased to €6.06m.

NTR refused to accept the ruling and last September appealed the case to the Valuation Tribunal, an independent body that adjudicates on rates assessments. The company argued that money paid to the government be removed from the calculations and raised a number of other technical points.

In December 2005, the tribunal ruled in favour of NTR’s argument and reduced the rates to €3.7m, leaving the Valuation Office with no other option other than an appeal to the High Court.

NTR said it welcomed the Valuation Tribunal’s original determination and acknowledged the High Court appeal. It said it would not comment further as the matter is before the courts.