Maureen O'Sullivan (Dublin Central, Independent)

There are two aspects to this debate. One relates to small businesses paying this commercial rates and their viability. The other is the way local authorities depend on commercial rates for revenue.

Small and medium size businesses are in a very difficult situation and many cannot afford the current commercial rates during this economic downturn. If they cannot afford the rates they will have no option but to close, with disastrous consequences for their employees and for the areas where they are in business. It must be demoralising for areas, whether in city communities or in small towns and villages, to see businesses boarded up.

Every job lost costs the State in the region of €20,000, and we know the unemployment statistics. Apart from the commercial rates, which must be addressed, the main issues for small and medium size businesses are upward only rent reviews, lower demand for their products and services, late payments - and the ISME credit watch survey tells us that small businesses wait an average of 72 days for payment - access to credit for start-up and expanding businesses and cost increases of at least 5% for insurance, energy, transport and waste. We need to support businesses providing employment. That means speeding up the process of the national evaluation of commercial property begun in 2005.

What is the point of exorbitant or very high rates which businesses cannot pay and which force them out of business so that no rates are paid? We saw an example of this in the closure of the Light House cinema in Smithfield, Dublin. Can we not do what the hotels and airlines have done, which is to reduce prices and fill beds and seats, and apply that strategy to the businesses so they can continue? The system must take account of ability to pay and current economic circumstances, in good times and bad. In the good times a business should pay more and in the bad times it should pay less.

With other public representatives, I attended a briefing given by the Restaurants Association of Ireland today. I know that during the Celtic tiger years, eating out was far more expensive than the food warranted. Nevertheless, the association says Ireland is the most expensive country in which to run a restaurant business. The association's comment, rightly or wrongly, was that local authorities are treating restaurants like ATM machines. Its press release made a number of points. Creating a fat tax will cost jobs, making employers pay four weeks sick leave will also cost jobs and increasing excise duty will drive consumers to Northern Ireland, and so cost jobs.

I am all for just and equitable commercial rates being paid by businesses. The idea of hypermarkets is being mooted. They may bring in additional income from high commercial rates but this could have a devastating effect on employment in small and medium size businesses. Local authorities provide vital services and need adequate resources to do so. Businesses should contribute fairly. Local authorities have provided supports for enterprise and small businesses, as the Government amendment says. Some local government reform has taken place but there is much more to do. Property taxes, water charges and septic tank charges are coming at a time when people cannot afford to pay any more.

Although I represent Dublin city I have a close affinity with some of the islands, particularly Oileán Cléire. Some county councils are imposing further charges and levies on islanders. We know costs for communities living on islands are higher than for those on the mainland.

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