Brian Stanley (Laois-Offaly, Sinn Fein) | Oireachtas source

I move amendment No. 20:

In page 40, between lines 16 and 17, to insert the following:“(2) Each municipal district may in respect of that district set the commercial rate based on profits in the previous year. This should be part of the calculation along with valuation.”.

As we heard a Member on the government benches say this morning, there are two economies. The economic realities in commercial areas in some towns and villages can be very different from what it is in others. Rates is one of the biggest matters of contention at present with regard to the funding of local authorities. The case was set out by the previous speaker in respect of the legacy rates. I agree with that and I have spoken to the Minister a few times about it. However, the issue here is the proposal in the amendment that the profitability of the company or business involved must be a factor. Some businesses have very small turnovers and profit margins. There are businesses with zero profit margins and some businesses are actually trading in the red, with people trying to keep them going on overdrafts. The amendment recognises that reality.

Currently, banks or other profitable businesses with turnovers of millions of euro, pay the same rates per square metre as the pound shop or a shop selling sweets or bicycles. We must have a rates system that is more reflective of economic reality in order to keep small businesses going.

We pay a lot of lip service to the SME sector, saying that we are all in favour of it, but in framing this legislation we must ensure that this sector is recognised. We must provide for the fact that even in good times some businesses will struggle. Where a business is making substantial profits, such as in the financial sector, the Bill should recognise that a bank can pay more than a bicycle shop. That key point needs to be reflected in the legislation. We want that discretion to be added to the calculation process which is archaic at the moment. It does not reflect the commercial and economic reality on the ground. Sinn Féin wants to ensure that jobs are protected, even if there are only one or two jobs in a small business. We must try to help businesses, particularly when there are difficult times, as there have been for the past four or five years. Start-up businesses should also be assisted to get off the ground when their profits are low.

Where businesses can pay substantially more and are making large profits, that should be taken into account. It is the fairest and most realistic way of doing it. It is also the most sensible way to create and maintain jobs.

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