Mick Wallace (Wexford, Independent)

I wish to share time with Deputies Clare Daly, Richard Boyd Barrett and Joan Collins.

There is no doubt rates have become one of the biggest burdens on small and medium-sized businesses. God knows the domestic economy has enough problems without the unresolved problem of rates hanging over the heads of businesses. I will outline a strong example in this regard. I have an 880 sq. ft. unit in the Italian quarter which I rented at €50 per sq. ft. in 2005 resulting in an annual rent of €40,000. In 2011, the rent is €25 per sq. ft., which means the annual rent will be €20,000. Local authority rates in 2005 were €6,073 and they had increased to €6,847 by 2009. Rates went up by 13% in that period but rent has fallen by half. The rates to rent ratio is 30%, which is absolute madness. If one tries to rent a unit for €20,000 annually and the rates cost 30% on top of that, it is almost impossible to rent it.

Revaluation is ongoing but it started in 2005 and, seemingly, the officials have still not got out of Dublin. They still have not revalued Dublin city centre. The revaluation system is too slow. More staff are required and there must be a link to market rent, which means a link to reality because that is non-existent currently. If it is not linked to market rent, a percentage of independently audited turnover should be set to achieve a realistic figure for rent. The 2009 Commission on Taxation report recommended setting up a transparent nationwide valuation system. It also recommended a cost effective route of appeal and regular valuations. Unless a proper system is put in place with the necessary staff, businesses will continue to go out of existence. That will mean less revenue for the Government, job losses and loss of morale with the economy driven further into the bowels of the earth.

See this speech in context