John Kelly (Labour)

I raise the issue of commercial rates. Yesterday, in Buswells hotel we met a delegation from Irish employers for affordable rates. To say that the retailers this group represents are struggling is an understatement. I have raised this issue on numerous occasions, including with the Minister for Enterprise, Jobs and Innovation, Deputy Bruton, and the Minister of State at the Department of Enterprise, Jobs and Innovation, Deputy Perry, who promised to consider alternative ways of assessing commercial rates so that blue chip companies could be dealt with in a different manner to small retail units.

Commercial rates in County Roscommon are valued at €74 per square foot compared to €52 in County Westmeath. The area surrounding Athlone is divided between County Roscommon and, across the bridge, County Westmeath. It is ridiculous that there is a difference of €22 per square foot between the rates levied in these areas because nobody will come to County Roscommon to establish a business.

The hotel sector is also struggling. Hotels are being assessed on a commercial rates basis for rooms that are not being used. If they could fill their rooms they would have no problem paying their rates bills.

A hotel in my area closed down because it could not pay its rates and water rates, with a subsequent cost of €840,000 per year in social welfare payments. Small retail units which employ three people face rates bills of €5,000 per year. If they close they will cost €63,000 in social welfare. The argument is made that debt forgiveness for small businesses would impact on the local government fund but the alternative is that the Exchequer will have to cover the higher bill for social welfare.

Irish employers for affordable rates would like the Valuations Acts to be amended to allow employers to appeal a rates valuation on the basis of changing economic circumstances. I call on the Leader to arrange for a debate on the matter with the Minister of State, Deputy Perry.