RETAIL businesses in Ennis will close if new rateable valuations on businesses are implemented, a number of traders in the town have claimed.
Last week saw a number of businesses receive letters about future rates bills, which left some of the traders shocked.
Barry O’Driscoll of Precious Pets said the bill he is facing is set to increase from €8,000 per annum to €14,500.
“When I found out what the formula was I realised, ‘Oh my God, my rates have gone up by 82%. Then I started phoning other retailers and I found they were in the same position, or even worse.
We got together then, because quite frankly it is very serious and there will be no shops left if this stands.”
He said that if there is no change he will go out of business.
“This kicks in on January 1, 2024 and I cannot trade with these catastrophically high rates unless something radical is done.”
John O’Connor runs Custy’s music shop just off O’Connell Street and he said that local government is trying to extract too much from local business.
“We are the commercial cadaver that is being feasted on by people who want to get as much out of us as possible. For a lot of people this is the final straw, it’s the straw that’ll finish them off in business.”
While the new valuations were not calculated by the County Council, he is still very angry at its impact on local business.
“What money accrues (from the increased valuations), accrues to the Council. I get the impression that it’s like an attempt to put so many impositions in our way until they force us out.”
He said that the new valuations could have a devastating impact on businesses.
“The majority of businesses are seeing an increase of 60-120%. That’s at a time when we’re at the pin of our collars to try and keep our doors open. It’s totally unfair and I lay the blame totally at the door of a Council that is not empathetic to businesses in this town.”
Noel Tierney operates a bicycle shop on Abbey Street and he said he will be facing a significantly increased rates bill. He also blames the Council for many of the issues faced by small businesses in the town.
“A lot of the councillors are no support to us at all. They just throw the kitchen sink at us the whole time, they do nothing for us. Everything that they do in the town is anti-trader. I’m 45 years in business and all the Council does is box ticking.”
Michael Leahy is an architect and planning consultant and he said his rates bill is set to increase by 60%.
Mr Leahy is active in the right wing Irish Freedom Party and claims the town’s traders are badly served.
“The temptation is always there for the councillors if they need extra funding to increase the commercial rates.
“The problem is there are very few voters paying commercial rates, it’s a non risk strategy for them, they can increase rates without it affecting their vote.”
Of his own projected rate increase, he said, “My bill has gone up by about 60% in one go, which is a colossal increase.
“There today I was trying to figure out what the basis of the evaluation was and it’s based on the estimated rate than an office will get in my location.
“The problem is that it’s impossible to rent an office at the moment. I have a lot of vacant space in my office that I can’t sublet. I’m now quite a small business, but I’m paying the rate of a much larger business.”
He said in the past it had been possible to reduce the bill by showing that part of the premises was vacant.
Mr Leahy said that charging by property size rather than turnover is flawed in any case, with businesses like furniture stores needing far more room than financial institutions to achieve the same turnover.
The traders assembled for a photograph in the Square in Ennis on Monday, where they also met Clare TD Michael McNamara.
Mr McNamara said that while undoubtedly many traders are receiving an increased demand, there may also be some misunderstandings.
“There’s also an awful lot of confusion being created by people being told that their valuation is X and they think that’s going to be their rates bill, when in fact the bill is the valuation multiplied by the ARV, so effectively a quarter of the valuation is what the bill is.
“Notwithstanding that, a lot of people are seeing huge increases. But I do think the letters are a bit confusing it would be better if people were told this is your valuation and this is the amount currently due in rates. Of course the amount that people have to pay is determined by Clare County Council in the annual budget.”
Owen Ryan has been a journalist with the Clare Champion since 2007, having previously worked with a number of other publications in Limerick, Cork and Galway. His first book will be published in December 2024.