Mr. Anthony Foley:

Publicans consider rates as a significant and onerous penalty both in terms of concept, because until now only the commercial sector paid local authority taxes, but also because they do not take account of ability to pay. A pub might have the same valuation now as it had in 2007 - there have been minuscule changes in the poundage rates in local authorities - and is in effect paying the same amount as it did when business was booming in 2007. It is a significant cost element and both rural and Dublin publicans have made submissions to local authorities to seek improvements. On a general basis, they believe the various proposals from the local government efficiency review group should have been implemented to reduce the cost of local authorities and pass on some of those cost savings in reduced rates.

One of the worries about the proposed system is that the commercial sector will remain separate from the general population sector. Even if there are electoral controls over local authorities when they are eventually given responsibility for the property tax, councillors may avoid excessive increases for fear of losing their seats but that will not apply on the commercial side because it forms a minor part of the electorate. The ideal for much of the commercial sector is an integrated and uniform local authority tax which is levied in the same way on everybody and ideally reflects ability to pay. They are certainly not happy with the present system or the efforts made by local authorities to reduce the burden.