John Kelly (Labour) | Oireachtas source

I welcome the Minister of State. I have called for the re-evaluation of rates three times in this House and I welcome some movement on it. However, I must agree with some Senators that we are not going far enough in this Bill.

The reality is that there is a world of difference between life and business in the larger towns and cities and that in rural areas. For four days of the week in rural areas I listen to business people complaining they are facing closure owing to many issues related to the running of business and that people do not have the money. I was aware of a revaluation of rates in three areas in Dublin which meant a 35% reduction in rates. I welcome that reduction being rolled out across the country. As a result of the national spatial strategy, all the activity is happening in the larger towns and cities. I agree with Senators that inability to pay must be taken into account. There are small shop owners who employ one or two people but are unable to pay a rates bill of ¤4,000 or ¤5,000 and are threatened with closure. The reality is that if the business closes, the two staff members will cost the taxpayer ¤42,000. That the business may have closed because of the non-payment of ¤4,000 means that these issues must be taken into account.

In Roscommon we have the ludicrous situation where the rates for most of the land near Athlone is ¤74 per square foot, the third highest in the country while the area probably ranks 30th in terms of business activity. Across the bridge in Athlone, which is a hive of activity, the rates are ¤52 per square foot, a difference of ¤22 between two counties divided by the Shannon. That issue needs to be examined. If the Minister is considering piloting the issue in another area he should do so in Roscommon because there is an acknowledgment from officials in Roscommon County Council that they are flabbergasted at the rates payable in the county.

I agree with Senators Keane and van Turnhout in respect of child care facilities. We should examine that issue with different goggles. There are child care facilities, small retail businesses, large retail businesses and blue chip companies which should be examined on the basis of four bands. There should be a significant reduction in the rates payable for child care, not quite the same amount for small businesses and a scaled back means of assessing rates for the various business outlets. I ask the Minister to consider a pilot project in Roscommon by virtue of the exorbitant rates payable there and the inability of businesses to pay them. If they unable to pay rates and people are put on the dole that will cost us in the long run.