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 Aidan DavittAidan Davitt (Fianna Fail)
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I was just curious. Small retail is really jumping out at me. It is very serious. It is happening on the ground; I have seen it first hand. In this week's Meath Chronicleit is stated that 40% of businesses are going to be judged on their turnovers for the first time under the new valuation system. This has never happened before. In Westmeath, 56% of shops have had an increase. Almost six in ten have had an increase. Likewise, in office space, 30% have had an increase. In big business and industry, only 16% have had an increase but in the hospitality sector, 40% have had an increase.

Small shops are the most hard hit sector. That is not in dispute. Nothing is being done for the people in that area. They are suffering, with the main issues being Internet shopping and Brexit the main issues. This is massive, and nobody is talking about it. We have to plug the gaps and all that. Deputy Neville seems to be up to date on what the rates are, but businesses have experienced massive jumps. I gave one example, and I could give 30 examples of similar magnitude. I do not know if we are getting it yet. Mullingar is a long way from Dublin, but this is going to happen in every provincial town. It will happen in Navan next. It is in the post. It will be worse, because 40% of them are going to be valued by turnover. This is a fundamental shift in how rates are valued. It is going to be cost neutral, but it is shifting away from big business and towards small retail, which is on its knees. The figures are there. Perhaps it does not suit all of our interests, but that is the reality of it.