Colm Burke (Fine Gael) | Oireachtas source

I wish to raise the issue of commercial rates, which will come before local authorities in the next two months. An analysis was undertaken over the summer months to identify the amount of commercial rates being paid in local authorities and the lack of discretion allowed to councillors. For example, Cork County Council collected over €118 million in commercial rates, which is local tax, and some €27 million of that was collected from the top ten companies. In one of the local authorities in Dublin, over €314 million was collected, €67 million of which was collected from the top ten companies. The average amount paid per ratepayer in Cork is €11,647 from a total of 10,200 ratepayers. In Cork city alone, 5,500 ratepayers paid an average of €10,899.

One of the points is that discretion must be given to councillors, in particular in areas where there is a need for redevelopment of urban areas where an incentive is required. Councillors should have discretion so rates can be adjusted for specific areas and, at the same time, that adjustment can be absorbed in the overall rate for the rest of the local authority area so it is cost neutral. A number of councillors have raised the issue with me that they do not currently have any discretion in this area yet they are supposed to be in charge of their area. If necessary, we need to bring in amending legislation if this cannot be done under the existing structures. It is a very important issue, in particular in order to encourage new businesses to start out in an area businesses have moved out of or to encourage development in particular areas. It is a discretion that should be given to individual local authorities.