John Kelly (Labour)

I also welcome the Minister of State, Deputy John Perry, who knows my native Ballaghaderreen in County Roscommon very well. On behalf of the people and small businesses of Ballaghaderreen, elsewhere in County Roscommon and County Leitrim, we must focus on sustaining existing jobs.

Commercial rates are a big stumbling block to many businesses remaining in business. They are putting many people on the dole. There is no reality in the way we are conducting our business because we are pulling from the same pot of money in this regard. Where a business cannot afford to pay €3,000 or €4,000 per year in commercial rates it will put people on the dole, each of whom costs the taxpayer €21,000 per year. Some mechanism must be put in place to alleviate that difficulty. I am aware of businesses in my native town which are considering putting up partitions in their shops in order they can cram everything into a smaller space. At the same time, their turnover and profit are gone.

Some years ago a new hotel opened in Ballaghaderreen and employed approximately 60 people. Its rates bill each year was €40,000, while its water rates bill every week was €600. It could not sustain these figures and closed down. I am aware that county councils need commercial rates to maintain their viability, but would they not be better off with no rates and a business running and employing people instead of squeezing the lifeblood out of a business and shutting it down? A pilot scheme to review commercial rates was carried out in three areas in Dublin in the last two years. It resulted in a 35% reduction in commercial rates in the three council areas. This scheme should be rolled out throughout the country as soon as possible because this problem is shutting down businesses.

The way commercial rates are assessed must be examined. It should not be just about the size of the business premises concerned. Consideration should also be given to the turnover in the business and certainly its profits. Otherwise, many more businesses will be shut down.