Barry Cowen (Laois-Offaly, Fianna Fail)

Like others I appreciate the opportunity to speak to the motion. As a member of Offaly County Council for 18 years I am acutely aware of the value of rates to a local authority. I am also acutely aware that a county like Offaly has a low rate of large bulk industries and a depends on State agencies such as Bord na Móna, the ESB, Coillte etc., which may be diminished if the Government has its way and puts them into private ownership. I am sure they will be scaled down greatly from what they are today. That will leave a diminishing rate base and increase the burden on small businesses and family owned retailers. They must take the burden of increased local authority expenditure, with lower Government grants in the central local government fund. The new regime for car tax will also have diminished local authority income.

With the property tax being introduced, what system will allow for the reimbursement of funds collected by local authorities? Will that be confined to counties where the money is collected or will there be a more fair and equitable system to top up the local government fund?

As many speakers have noted, the downturn has had a disastrous impact on business and jobs as a result. We want the Government to commit to an urgent review of local authority rates, with a view to introducing a much fairer and more reasonable system for local businesses. In recent months we have seen the drop in retail figures, and businesses throughout the country are struggling to cope with inflated costs. They are under serious pressure to meet such costs. For many businesses, one of the largest financial burdens is the rates bill. The valuation lists used for commercial properties hardly resemble current property prices or valuations, which is contributing to the inflated rates. The system needs a complete overhaul if we are serious about supporting local businesses and allowing them to retain and grow jobs.

We call on the Government to look at new systems such as self-assessment based, for example, on turnover. A new system should take into account the ability of each business to pay and the fact that many businesses are seasonal. Based on earlier contributions, I am concerned by the extent to which some members of the Government appear to shrug off the issue at a time when so many businesses in my county and many others throughout the country need as much support as possible from the State.

Recently, we heard of a 2% increase in VAT and that employers would pay sick leave in future. The Minister for the Environment, Community and Local Government indicated there might be no change to commercial rates. If small business owners go bust and are forced to close there are no social welfare entitlements for them. If they have a few children the Government will cut the income from child benefit as well. That is a huge vote of confidence from a Government that promised jobs budgets, jobs initiatives and 100,000 jobs from NewERA. Give us a break lads.

It is crucial that we give small businesses as much breathing space as we can in order to secure their future and encourage growth and job creation. This Fianna Fáil proposal only asks for what is fair and seeks to modernise what has become an outdated system that is full of anomalies.

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