Rate reforms 'could be scrapped'

Northern Ireland's houses have been valued for rating

Northern Ireland's new domestic rates system could be scrapped by assembly members if devolution returns, Finance Minister David Hanson has said.

Letters telling homeowners what their new rates bill will be are being sent, with some people facing big increases.

Speaking on BBC Radio Ulster Mr Hanson said he thought such decisions should be taken by local politicians.

"They can rescind it," he said, but there would be a "tremendous upsurge" in the amount of work needed to do so.

"But any matter that I deal with now as a direct rule minister for assembly matters can be looked at again by the assembly in due course," he said.

Under the reforms, about 30% of households are to face a rise of up to £150, with a small minority facing even larger increases.

Homeowners are being advised of their property's capital value.

That figure will then be used to calculate next year's domestic rates bill and the new water charges. Both of these are due in April 2007.

The capital values are set as of the start of January 2005.

Devolution in Northern Ireland was suspended in 2002, but the British and Irish governments recalled the assembly in May with the aim of restoring power-sharing by November.