Seanad debates

Thursday, 16 June 2011

5:00 am

Photo of Paul BradfordPaul Bradford (Fine Gael)

I welcome the Minister of State, Deputy Perry, to the House. While my motion requires a response from the Department of the Environment, Community and Local Government, in a sense it is appropriate that the Minister of State is present because he has responsibility for small business and my motion is directed at giving some degree of flexibility to local authorities and their officials to ease the financial plight of small businesses.

Cork County Council has approved a motion and has been in contact with the Department of the Environment, Community and Local Government proposing that changes be made to the Valuation Acts to allow a degree of flexibility in the levying of rates. I am advised that under the current Valuation Acts once the valuation level is set, the rate in the pound, as it was called in former days, must be applied on a uniform basis to every commercially rateable property in a particular local authority area. The members of Cork County Council are unanimous in requesting of the Department of the Environment, Community and Local Government that an appropriate amendment be made to the Valuation Acts giving the manager and the councillors discretion to reduce the rates being charged on certain small businesses under certain circumstances.

Members of Cork County Council, along with local authority members throughout the country, are very much aware that small businesses are under very severe financial pressure at present and even a small reduction in the rates being charged would be of great benefit to small hotels and shops, and other small businesses. Apparently the present regulations do not allow for any flexibility. The request addressed by Cork County Council to the Department made it clear that if through a change in the Valuation Acts the councillors were allowed this degree of discretion it would ensure it would be enacted on a cost-neutral basis. There is an acceptance by the councillors that the present rateable valuation system and the rates being levied provide a huge degree of funding for the county. Unfortunately we are not yet in position to provide alternative funding so a deduction of rates for certain businesses and the savings for those businesses must be compensated for in other ways, and this is accepted. This is why Cork County Council requests that the Valuation Acts be changed in circumstances where the reduction in rates would be on a cost-neutral basis.

I believe the request has been made in writing and is being examined by the Department of the Environment, Community and Local Government. As the Minister of State is present wearing his Department of Jobs, Enterprise and Innovation hat and has responsibility for small businesses, I ask him to take a keen interest in this idea from Cork County Council and to liaise with the Minister, Deputy Hogan, to examine whether a degree of assistance and financial relief can be brought to the small business sector which is such a huge employer and is so important to the economic fabric of every community throughout the country.

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