John Browne (Wexford, Fianna Fail)

I compliment Deputy Niall Collins on bringing this motion before the House and giving us an opportunity to contribute to the debate on rates, as well as the hardship being imposed on business people now. Irish Employers for Affordable Rates, an umbrella group, has been arguing for the inclusion of an economic circumstances clause in the Valuation Act 2001. This organisation was set up in my own county of Wexford and has since expanded across the country. It has managed to fill halls and hotel function rooms with significant numbers of business people. These people are not turning out for the sake of it; they are finding it difficult to make ends meet. They would rather be doing the business they are meant to be doing but, unfortunately, because of the high rates being charged on premises, they are not in a position to meet repayments to local authorities around the country. For that reason the businesses have come together to put pressure on the Government and other politicians to do something for them.

My clinics and those of every Deputy throughout the country are for the first time being visited by business people who in the past have always met their rate repayments but who, because of the downturn in the economy, are no longer in the position to do so. As a result, many businesses are closing and letting people go, with some workers on three day weeks. Some businesses have closed completely. It is the same scenario in towns where footfall and spending is low and business people, shopkeepers and retailers are finding it difficult to survive.

Such people are arguing with me and every politician that we must take action. The revaluation process is ongoing in Dublin and sometimes I wonder why it started in Dublin and will take ten years to get out of the city. What about the rest of the country? There are problems for business people in other parts of the country and it is important to speed up the valuation process. Extra staff should be taken on board and decisions should be made quickly.

We know the local government efficiency review group has earmarked €510 million in savings for the sector. I have long held the view that local government is not performing the way it should. With the estimates process every year, a county manager will come in acting like a dictator and presenting the estimates for the councillors to go along with. That will usually happen in two hours or so. When I was on a county council - I am sure it was the same for the Minister of State - it took the best part of a week or ten days to go through the estimates and make savings and efficiencies. Whatever the county manager says now is usually agreed by councillors. It baffles me when a Government must implement an efficiency policy in local authorities. If efficiencies are to be made, the county manager is being paid a fat salary to make them and they should be done quickly and efficiently. The savings should be passed on to ratepayers. My own local authority has been reasonably flexible with business people and allows them to pay over months or a year. Nevertheless, it is still looking for full payment, which is not acceptable to business people.

The time has come for action in the process, which should be speeded up. The Government must live up to its commitments in the programme for Government and initiate a new rates policy for the betterment of the people. Deputies have mentioned furniture stores and I visited one recently which has four floors. The owner expanded the business during the good times, made some good money and paid significant rates. When he applied for planning permission, the rates evaluation office was notified upon granting of the permission and a lady increased his rates tenfold. There is currently only one floor of the four floors on the premises operating, and there is no business or employment on the other three floors. He must pay the full rates on the four floors. That sums up the problem and we need a rates system based on income rather than the current valuation system.

As a business person who has operated for many years, and as somebody who probably understands the position of business people far better than those of us who are not in business, I ask the Minister of State to take on board the suggestions tonight. He should make some changes to allow business people to remain in business.

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