Tom Shehan (Fine Gael) | Oireachtas source

In regard to the ability to pay and the calculation of rates, a supermarket comprising 4,000 sq. ft. with 20 staff, a turnover of €2 million, gross profit of 10% and net profit of 4%, can be levied with a rate of €8,000 per annum. On the other hand, a professional operating out of two rooms with a turnover of €1.5 million per annum might pay €300. I have long argued that the calculation of rates should have a connection to turnover. The turnover should be reflected in the rates. As has been noted earlier, I do not think many of us can give examples of rates being reduced.

A lot of people who would like to get into business are being pushed away by the fixed costs. Last year or the previous year, a county manager showed initiative by reducing the rates in regard to an area of a town with no commercial activity for a period of two years. Businesses which are struggling with increasing bank charges and other expenses should be helped in some way. Previously, some local authorities set rates that reflected businesses' accounts but I understand that the ability to do this has been removed. I do not think that was the best thing to do but I join my colleague, Senator Byrne, in asking the Minister of State to consider this issue. It is often the last straw that breaks the camel's back. Many business people are not taking a wage because they want to pay the rates and the water bills, along with everything else. They need to be given some breathing space or a light at the end of the tunnel along the lines of ability to pay.