Ibec issues call for the reform of commercial rates

This proposal follows the movement of the Local Government (Rates) Bill 2018 through Dáil Eireann.

Commenting on the report, Ibec Senior Public Sector and Regulatory Executive Aidan Sweeney, said, “Local authorities have a significant impact on business conditions and cost competitiveness. Approximately €1 out of every €3 spent by a local authority comes directly from local businesses.

“Local authorities are relying on business to balance their books. In 2019, the Midlands business community will contribute €55 million to the combined income of Laois, Offaly, Longford and Westmeath County Councils.”

Mr Sweeney said the collection of commercial rates must be improved and said a centralised model like the Local Property tax system should be considered.

He said, “New commercial rates incentive schemes are needed to encourage regeneration, entrepreneurship and productive investment. They must be properly budgeted for and not crudely fall on remaining rate payers in the locality.

“Local businesses should be consulted over the development of new incentive schemes. After all, local authorities are responsible for local economic development.

“The new legislation as it stands does not go far enough. The revaluation process must be scrutinised including costs and timelines which are far too slow. Finally, we are calling for a full review of local government finance, including examination of replacing commercial and domestic property taxes with a site or land value tax.” he continued.

Concluding Mr Sweeney said reductions in central government contributions have led to local authorities becoming reliant on businesses for their revenue.

“This is not sustainable. It is time for a comprehensive discussion on local government funding,” he stated.