Cut rates, or see jobs lost

By TONY GALVIN BUSINESSES throughout the county are suffering enough without being hit with inflated rates demands. This was the message delivered by members of Galway Co Council this week. A call was made for a fairer way of assessing commercial rates to be investigated as a means of helping hard-pressed small business stay afloat. Member after member related instances of businesses being hit with hiked rate demands at a time when they are struggling for survival and the frustration caused by what was termed an out-dated and illogical assessment process. One member stated bluntly that Galway had suffered enough business closures and members of the Co Council didn't want to be responsible for more by supporting rate demands to fund their activities. At the authority's May meeting it was proposed that rates be recognised as a tax and as such payment should be based on profit and not a controversial system of valuation which allows little leeway. Speaker after speaker pointed out that income in very many small businesses had fallen dramatically during the recession but business owners were still being assessed for rates based on the size and type of the property they occupied. Galway Co Council finds itself in a difficult position. As revenue from the exchequer dries up the local authority cannot afford the loss of income which a reduction in rates would represent. Many members of the Co Council agreed that rates should be based on the profit a business can generate and not set rules which often left struggling businesses lumbered with yet another debt. One member of the council said he knew of a business in North Galway which had lost two thirds of its trade yet their rates bill has been doubled. However, it was pointed out to the members by a fellow councillor that if they brought about a cut in rates then they had to accept that this would result in a corresponding cut in the services the council could provide. Mayor Jimmy McClearn who was hosting the meeting in his home village of Killimor said that one of the greatest problems was that the legislation governing the assessment of commercial rates does not allow for any distinction to be made between those who can afford to pay and those who cannot. '2010 was tough, 2011 is going to be even more so. We can't rely on businesses to provide the council with funding when many are simply trying to stay afloat and keep people employed,' he said. He was supported by Cllr Jim Cuddy who argued the current evaluation process is out of date. He warned that if a business closed because of costs they this would be a total loss to the exchequer. Cllr Peter Feeney said that Environment Minister Phil Hogan was in Athnery recently and met with a group of local traders who outlined their concerns over the rates. He said the Minister was well aware of the issues and acknowledged that there may have to be a review of legislation in this area in light of the difficulties many businesses were experiencing. Cllr Feeney proposed that the rate bills for smaller business be reduced by a flat 25 per cent across the board. 'I've no intention of giving the likes of Tesco a free run when they're closing down half the small shops in the county, but business that are struggling have to be given some support,' he said. Cllr Liam Carroll warned that what was being proposed sounded a lot like the old turnover tax and members should be sure of what they were proposing before they went further down this line. Cllr Tom McHugh said the main problem lay with how the Valuations Office worked. 'It appears that they pick a property and value it and then when they come across a similar type property within a 15-20 mile radius they simply slap on the same valuation. This is without assessing turnover or income. At a time when earning are down at lest one third in most businesses, this is simply too blunt an instrument.' The meeting decided to take the matter up again in the near future.