Dáil debates

Wednesday, 17 May 2017

Insurance Costs: Motion [Private Members]

 

6:30 pm

Photo of James LawlessJames Lawless (Kildare North, Fianna Fail) | Oireachtas source

I want to focus on the costs to businesses in an already difficult environment, particularly businesses in towns in rural and regional Ireland. Businesses in our towns are already under huge pressure on a number of fronts because society has changed. In particular, how we shop has changed, as have our demographics and our use of technology. People now purchase more goods online, they commute longer distances and often pick up their groceries on the way home. People engage in commercial activities in very different ways now so town centres and once thriving traditional market towns are struggling. Businesses in town centres also have to contend with the difficulties caused by planning decisions which have led to the development of out-of-town centres and satellite centres. This drives people out of the town centres and away from traditional businesses.

The issue of commercial rates has been well debated in this House recently. In my county of Kildare we witnessed a huge commercial rate re-evaluation in recent months at the most inappropriate time, just as the country is coming out of recession and into some form of putative recovery. Businesses are being kicked again, just when they were beginning to get back on their feet, by rates increases of between 300% and 400%. In many cases, these increases are not linked in any way to an ability to pay, turnover or profitability. Coupled with that, retail theft remains a huge issue. The issues of crime, vagrancy and the lack of gardaí as well as old-fashioned daylight robbery are unfortunately features of my constituency of Kildare North, where we have the lowest number of gardaí per head of population. Business are being hit again and again and have almost become resigned to it at this stage, having been held up time and again. Brexit and the uncertainty that it brings has also been mentioned in this debate. All these issues underscore why insurance costs are so pivotal in keeping the door open for many traditional, bricks and mortar, small businesses on the main streets of our towns. These factors in combination mean that their competitiveness is taking a hammering. They are trying to trade in the face of online and other forms of competition and are finding it increasingly difficult to keep the door open.

I urge the Minister of State to take on board the detailed motion tabled by my colleague, Deputy Michael McGrath, which contains some excellent points. This issue needs urgent attention. I heard the Minister of State on "Morning Ireland" dealing with some of these issues and gamely trying to avoid dealing with other issues, which he succeeded in doing. It is a very important motion which I commend to the House.

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