Oireachtas Joint and Select Committees

Thursday, 7 November 2013

Joint Oireachtas Committee on Environment, Culture and the Gaeltacht

Ibec

1:45 pm

Ms Anne Marie Caulfield:

I wish to respond to one or two questions regarding rates. Deputy Catherine Murphy mentioned vacant properties in rural areas, small towns and some town centres. I am in business as a landlord also and it makes no sense to me that where a property is vacant, I pay rates on it. If it is vacant, I am making no income from it. Such a property is a charge on my business and, therefore, has a knock-on impact on business. It does not seem reasonable to have to pay rates in that instance.

Retail businesses are the biggest employer in the country, with approximately 250,000 employees in the sector. If businesses wish to let properties to new businesses or people who want to set up a business, they will be asked two questions by prospective clients - about the rent and the rates payable. We have control over one of these areas, the rent payable but not rates. However, the rates payable are often the linchpin which determine whether somebody will proceed with setting up in a premises, particularly in smaller towns and locations where there are significant numbers of vacant properties. For a small business, with one or two jobs, these issues all count.

With regard to the provision providing for a reduction in rates by up to 15%, this would be welcome. However, as Senator Cáit Keane said, this is where a local authority can afford it. The question must also be asked whether the business can afford the rates charged or not to receive a reduction. We have all cut our cloth and gone through painful processes to reduce costs while paying all of the additional charges required to be paid. Therefore, it is not unreasonable for us to expect to see a reduction in rates for businesses.

The idea that additional moneys can be collected to facilitate the provision of free parking and so on which all add to footfall and help to generate business is positive in theory, but few businesses can afford to pay additional charges. The principle is a good one, but whether it is practical for many businesses is the question.

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