Michael Collins (Cork South West, Independent) | Oireachtas source

I am sharing time with Deputy Michael Healy-Rae. I welcome some of the changes to the Local Government (Rates) Bill because it is vital that our local businesses are supported in a positive manner that will allow them to continue to operate. It is high time that we finally see this Government shake up its act and start taking steps to support hard-working, self-employed people running their own businesses in these difficult and uncertain economic times.

Under this Bill we will see changes that will allow local authorities to be given the power to significantly reduce commercial rates for businesses in their areas. These measures will allow councils to introduce rate alleviation schemes, which potentially will reduce costs for local businesses. A major problem we have seen recently is business owners facing three or fourfold increases in their rates following valuations of their premises in the wake of the crash in property prices and the sharp recovery of recent years. These rates increases are crippling businesses. Our businesses are already struggling to keep their heads above water. Retail businesses are struggling with the competition from online sales and the modern trend whereby people have moved away from buying regularly and locally. A retail business cannot afford any rates increase in the current climate.

There was a time when our local villages and towns were full with retail shops such as clothes, sweet, hardware shops etc. For example, in my constituency area of west Cork, Ballineen was once a thriving village with numerous shops including clothes, shoes and furniture shops. If one could name it, Ballineen had it, and people travelled far and wide to come to those shops in the village. If one drove through the village of Ballineen today one would find it hard to believe it was once such a thriving village. The village has lost business after business, including the closure of the Ballineen post office last year. There are more derelict empty commercial premises than the current number of business that are left in the village trying to make a living. That is a sad sight to see and, unfortunately, it is not unique to Ballineen. It is a sight we see throughout the towns and villages of west Cork.

Last year, I saw a haemorrhaging of businesses throughout west Cork. To name a few, we had the closure of Long's shop, in Timoleague; Lordan's butcher shop in Ballinspittle; Hickey's food store in Kilbrittain; O'Driscoll's post office in Ballineen; AXA Insurance in Bantry; Desertserges post office in Enniskeane; the credit union in Drimoleague was meant to close; the Welcome Inn pub in Bandon; Drinagh's post office; Brady's Bar, Bandon; The Square Bar in Bandon; and the Creative U craft shop in Bandon. Many more business have closed their doors that I have not mentioned.

What has happened to rural Ireland? In the programme for Government, rural-proofing of all policies was to take place. It baffles me that rural-proofing was promised but in reality, something is seriously wrong in terms of rural Ireland when many rural businesses are haemorrhaging in such a short time. I call on the Government to protect rural Ireland and to start taking real action to protect the business owners in rural Ireland who are struggling to make ends meet. Where businesses in rural towns and villages are deteriorating, the remaining operating businesses should be given a reduction in their rates or a rates-free period during which time they could use that money to invest in their business and ensure their survival in rural Ireland.

Further, we need to look at rural pubs that were once the social hub of rural Ireland. These pubs can no longer keep their doors open. I mentioned the Welcome Inn pub, Brady's Bar and The Square Bar in Bandon - three pubs in one area that have closed their doors in the past few weeks. Surely it resonates with the Minister of State that we have a major problem in that regard. The Bill brought forward by the Minister for Transport, Tourism and Sport, Deputy Ross, has destroyed rural Ireland. Unfortunately, it was supported by most Members here without looking ahead at the consequences. Rural Ireland is on its knees and to get to this point, the Minister is codding the people by leading them to believe that this Government is following its promise of rural proofing its policies. The opposite is happening. The Government has neglected rural Ireland and pushed rural communities to the margins.

If this Government is serious about restoring rural Ireland to its former glory, it will make sure that rural pubs will be entitled to a waiver from rates until it resolves the current driving situation that is deterring many local people from enjoying an important social outing in the rural pub that is part of our heritage. The rural pub was always a hub for music and storytelling but now it is only a hub for tumbleweed to blow up and down on its floors because the Government has scared the people of rural Ireland into thinking they cannot come out even for a couple of hours to enjoy their local pub. This Government, along with the Minister, Deputy Ross, has nailed the coffin shut on rural Ireland. I will not lie down without a fight for the people of rural Ireland. I will fight to the bitter end.

We need to examine ways of encouraging start-up businesses in rural Ireland. Not only should the Government provide a direct free service to align new business with supporting information on grants etc. but that support system should be easily accessed. Further to that, all new businesses should be exempt from rates for their first 12 months of trading to allow them get up on their feet, so to speak.

Budget 2019 was very disappointing. It was an awful decision by the Government to restore the VAT rate on the tourism industry and increase it back to the rate of 13.5% from 9%. That is having a major negative effect on hotels, restaurants, cafés, hairdressing salons and other associated businesses. It is causing nightmares for hotels in rural communities in particular, which are struggling and basically have a business from May to September. Very few people will come inside their doors for the next number of months. Now they are being met with a hike in the VAT rate to 13.5%, which will result in many job losses and might even lead to closures. That will result in a massive loss of rates, so there are no winners in that regard. As the Government is adamant it will not reduce the VAT rate, I ask it to give a rate exemption for a number of months to all these tourism businesses. Already, the majority of them are low-profit businesses that rely on high turnover volumes to ensure profit is made. However, the VAT increase is negatively affecting the volume of people using those businesses. They are struggling to make a living, and many of them are making a loss. If we see the closure of more of those businesses, it will have a knock-on effect in terms of job losses. I appeal to the Minister of State to take action now and support these businesses by giving them a rates exemption for a period.

Another massive let-down was the increasing of the VAT rate to 23% on food supplements, vitamins and minerals. We have many wonderful health shops across west Cork but this Government refused to listen to those business owners when they begged it not to increase the VAT rate. I also contacted the Minister for Finance, Deputy Donohoe, at the time and pleaded with him not to increase the VAT rate because it could lead to the closure of many of those shops. We have seen a big uptake in the number of people caring for their health and 80% of people use health food supplements including vitamins, minerals, Omega 3 and superfoods. The Government has increased the VAT rate on these products, which will force some to stop buying them as they will not be able to afford them. As 84% of the population disagree with this VAT increase, when will the Government listen to the people who elected it? As it will not reverse this VAT increase it is only fair that it allows businesses such as health shops selling these products to get a rates exemption for a period. That is necessary for their very survival. It is the Minister of State's duty, as a member of this Government, to do all he can to encourage people to live as healthily as they can but instead the Government is putting financial obstacles in their way.

As I said, rural Ireland is haemorrhaging badly and it is very easy to see that. I have no problem bringing the Minister of State to west Cork and taking him to the towns and villages I am talking about. I think he knows west Cork very well. I would appreciate it if some consideration could be given to these businesses. I have said and will continue to say in this House that the Minister, Deputy Ross, has finished rural Ireland, and the Government should not have backed him because it will lead to a catastrophic loss of jobs in this country.

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