Shannon business sector deplore high rates

A DELEGATION of Shannon business people have challenged Clare’s 32 county councillors to represent their concerns on “crippling” rate charges much more effectively.

 

The Shannon Businesses For Affordable Commercial Rates, led by SkyCourt manager Pat Kelly, met with the council in Shannon Airport on Monday before the full December council meeting.

In a detailed presentation, Mr Kelly pointed out that a business person operating from a 1,000ft2 shop in Shannon (population 9,000) pays approximately €6,200 in annual rates to the local authority, compared to a figure of around €4,000 in Ennis (population 20,000).

Shannon commercial rates are 17% more expensive than in Ennis and 22% higher than those in Kilrush.
Noting that Shannon businesses do not object to paying rates, Mr Kelly asked that rates be reduced in 2013 and fixed at a reasonable level compared to other towns and counties.

Mr Kelly also told the councillors that Clare water charges are the second-highest in Ireland behind Wicklow and have increased by 150% over a three-year period.

He added that refuse costs in Clare have increased by 80% from €75 per tonne in 2009 to €130 per tonne in 2012.

He said it cost €2 million to keep Inagh dump closed this year and it will cost €1.7m to keep it closed next year.

Several councillors expressed their sympathy for the Shannon business people but said they don’t have the power to reduce rates. They suggested they take their concerns to Clare’s Oireachtas members, whom they have already met. Following a number of contributions from councillors, Maurice Lynch of Rory Lynch Transport implored the councillors to work much harder to represent their constituents.

“You are saying we should go to the Oireachtas members. Why don’t ye go to the TDs? You’re the councillors. We were told by the TDs to meet you. We’ve met you and you are telling us to go and talk to people in the Oireachtas. Ye should be approaching people in the Oireachtas looking for reductions for your own county,” Mr Lynch told the now-silent councillors.

He emphasised that the current rates are “crippling” and are causing businesses in Shannon to fold.

“We need a reduction and we need it quick. Since we had our first meeting, four businesses have closed in Shannon and there will be more next year. People collecting rates are telling businesses, ‘if you can’t pay your full rates, close up’. That’s the attitude we’re getting from the council. A local body telling people to close because they can’t pay their rates? That’s not right and it needs to change,” Mr Lynch stated, before telling councillors their attitude is not acceptable either.

“It’s not right and the attitude is not right. You’re elected members. You are the guys that should be pushing for a cut in these rates for the people that voted for ye. We need fair rates. Businesses are closing down because of the rates,” he reiterated.
Councillor Gerry Flynn praised Mr Kelly’s earlier presentation but said it would have no real impact.

“I think the best you can hope for this year, from the deliberations that I have heard, is status quo. You will not get a reduction or an increase. You have my full support. I wish I could tell ye that ye are going to get a reduction but from what I have seen thus far, it looks like there will be no reduction,” he said.

Councillor Flynn suggested that only the Government could alter the method with which rates are charged.

“It seems from the figures that you’ve given out, that businesses in Shannon are being hammered. The only bit of easement that will come for the business sector is if the Government puts in place legislation to differentiate between the big rate payers and the small to medium business sector. As things stand, if a reduction of 10% is given to small enterprises; that would also have to be given to the big ratepayers, such as Moneypoint. Basically, it’s being used as a stick to beat you,” he suggested.
Councillor Joe Arkins said rates should be linked to the profitability of a business.

“Your rates should be directly linked to your turnover, profitability and audited accounts. A lot of the difficulties are in relation to the legislation. There is no coloration whatsoever in turnover, profit and ability to pay.  The rates and valuations are set in stone and are archaic,” Councillor Arkins said.