Vaughan seeks drop in commercial rates

CLARE County Council and Ennis Town Council have been slammed for not taking a more positive approach to a struggling local tourism sector.
Michael Vaughan, chairman of the Shannon branch of the Irish Hotels Federation (IHF), said the council has not recognised the type of difficulties the industry is facing.
“Essentially, the council has refused to take into account the drop in incomes in the county. They have said to us that the problem is not of their making, the problem is with the funding of local government and our beef should be with the Department of the Environment and the Government. But they could have taken a leaf out of the book of Kerry County Council, who are giving reductions of up to 30% for businesses that are in difficulty. You can’t go charging peak prices in a severe recession,” Mr Vaughan said. He also said the local authority in North Tipperary had managed to cut their rates bill and Clare should attempt to do likewise.
Mr Vaughan said commercial rates are effectively a property tax, as they are based on the size of business premises, rather than the success of the business. “To balance the budget, they just increase the rates and it can’t go on,” Mr Vaughan claimed.
He said banks negotiate with customers when people aren’t able to pay and that similar flexibility is needed from the local authorities.
“Hotels and guesthouses around the county continue to subsidise other commercial rate payers through excessive and disproportionate levies and this can no longer continue. We’ve reached a critical tipping point and believe it’s in everyone’s interest to agree a sensible agreement that safeguards the local economy and future revenue streams of local authorities,” he concluded.