Oireachtas Joint and Select Committees

Tuesday, 17 October 2017

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Cost of Doing Business in Ireland: Discussion

4:00 pm

Photo of Tom NevilleTom Neville (Limerick County, Fine Gael) | Oireachtas source

I would like to comment on the rates issue. During 2014, when I was a member of the local authority in Limerick, one of the biggest issues was the collection of rates when businesses were going to the wall owing to the recession. At that time, we introduced a rates rebates system - a carrot and stick approach - to encourage businesses to pay rates. As stated, a one size fits all system does not work when it comes to major retailers in cities versus small to medium sized cottage industries in rural Ireland which are struggling. Limerick County Council introduced a rates rebate system which encouraged businesses to pay a particular amount - which meant there was some money coming in - on which they would then get a percentage rebate based on values, which were zero to €10,000, €10,000 to €15,000 and €15,000 to €25,000. What we were trying to do was get the big businesses that were holding back or reneging on their rates to pay them so that we could look after the smaller businesses that wanted to pay but if they did so would go out of business. Nobody wants to see that happen. A one size fits all is very difficult to operate. County to county, markets differ. Leitrim has a different market to Limerick. Kerry is also a different market. I believe that some of the big multinationals in Kerry are paying 20% less than what they pay in Limerick.

In regard to a uniform rate across the country, is Mr. Burke proposing the transfer of the rates process from the local authorities to central government? If so, there is need for a much wider debate in that regard. The system adopted in Limerick in 2014-----

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