Seanad debates

Wednesday, 10 July 2019

Local Government Rates and Other Matters Bill 2018: Committee and Remaining Stages

 

10:30 am

Photo of Michelle MulherinMichelle Mulherin (Fine Gael) | Oireachtas source

On the issue of rates and the curtailing of powers in cases of a sharp increases in rates, there was rates equalisation in place at the time the town councils were abolished. Three town councils were abolished in County Mayo. Rates equalisation brought all the rates up to the higher level, which was the county council rate. Within the Ballina Town Council area, all the shops and businesses experienced rate increases. This may have happened to a lesser degree in Castlebar and Westport - Castlebar is a county town and has a county council and Westport may be a different kettle of fish. I can safely state that in my town of Ballina, the rates have increased and the services have diminished. Already there are issues in Ballina. I am aware that the matter has been well debated, but the abolition of the town councils has resulted in a greater centralisation of power to the chief executives of the councils. I do not believe it has had the desired result in the context of helping all parts of a county or a local authority area.

Commercial rates are a bigger burden on a small independent shop, retail outlet or cafe than they ever are on bigger businesses. This is a general statement, but it is true. The problem with smaller businesses on high streets is that they are competing with online retailers. They cannot compete. We can talk about market forces and it being the changing face of retail but another issue has to come into the debate, which is that we want vibrant town centres and we want these independent shops because their presence serves a public good. They are, however, being treated pretty much like the big guy and cannot compete. Compare this to a business that sells online, does not pay commercial rates and takes the money out of an area.

I feel that we need a new model for the smaller shops. The bigger retailers, multiple retailers and franchises can look after themselves. There could be a threshold established for special treatment for some people in identified two centre areas. Those town centres could be identified in conjunction with local authorities. I can tell that I will get a good answer in respect of that proposal. Hand in glove with that would be an incentive scheme to see people living back in the town centres. There are schemes under the housing programme and other initiatives, but when one goes to the rural market towns or even some of the bigger centres with urban sprawl around towns they are not very appealing places. Frankly, I am of the view that we need a more targeted approach. By leaving it to market forces in some of the towns and villages, people will continue to go elsewhere, spend their money elsewhere, live elsewhere and shop elsewhere. We need something radical.

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