Eamonn Maloney (Dublin South West, Labour)

I will be brief. Like others I welcome the opportunity to debate the question of commercial rates and it is an opportune time to do so given the state of the economy. I read the draft motion from the Opposition and one wonders if we would not be having the debate if some of the items listed had been acted upon previously. As others have stated, commercial rates are an important part of the funding for local authorities. For some authorities it is vital and for others it is not quite as important.

I disagree with some of the detail in the motion. There was an ESRI report some years ago and it almost specifically referred to the retail sector. There was a conclusion that commercial rates were between 7% and 9% of all overheads in a commercial business. There is a great focus on rates in terms of running a business and in some cases there is a great pressure put on local councillors and Deputies to bring changes to the system. Nevertheless, it is not the case that they are always a great burden, although they can be for some individual companies.

I was a member of South Dublin County Council, the second-largest local authority in the country, for 12 years, and it had a very progressive view on commercial rates. Rates may be a small factor in the grand scheme of running a business at 7%, and pay may make up half or more of costs. There is also the question of waste and water. There is a tendency to hear more about rates and how local authorities are punishing business but South Dublin County Council management took a unique view by indicating that businesses should come together on matters such as water supply and waste, recycling etc.

In a recession we become more acutely aware of certain facts and in most Irish businesses, an average of 35% of overheads relate to energy. Most commercial operators in Ireland, as opposed to some of our neighbours, are not as tuned into this issue. If 35% of overheads in a commercial business equate to five times the commercial rates, businesses should examine better ways of using energy more efficiently and securely.

I recognise that rates are an overhead and for many local authorities they are the lifeblood. Nevertheless, we should all examine how businesses can be more efficient rather than just concentrating on commercial rates.

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