Longford retailers furious over proposed 10% commercial rates hike

That was the gloomy prognosis of local retailers this week just hours after local politicians refused to sanction the proposed hike at a Longford County Council budget meeting on Monday evening.

Local authority chiefs had proposed the increase to meet the demands of an “unprecedented” €64m budget next year brought about by increased expenditure of almost €3.3m allied to inflationary pressures and cost of living crisis.

Acting Head of Finance Fema Flanagan said the introduction of a business support scheme would help offset the increases faced by smaller ratepayers despite adding over €260,000 to the local authority’s annual costs base.

Councillors, however, one by one spoke out against the move with the impasse leaving a €620,000 hole the council still has to bridge between income and expenditure in order to pass next year’s budget successfully.

In the midst of those fiscal wranglings, local ratepayers have been quick to lambaste any attempts to elevate commercial rate charges for next year.

Peter Dolan of Spirit Clothing hit out at the mooted increase and warned of the far reaching consequences facing already hard-pressed local businesses.

“There seems to be a ten per cent increase everywhere especially energy prices and it’s not ten per cent, it’s 300 to 400 per cent,” he said. 

“I think it is the wrong time to introduce another rate rise. Surely they can find it somewhere else in their budget.”

Mr Dolan also endorsed comments tabled by Fianna Fáil Cllr Seamus Butler who told of how such a rates rise could spark a “tsunami” of business closures next year.

“Absolutely, he has got his finger on the pulse,” he added. 

“He knows exactly what’s happening out there. It’s armageddon as regards to price increases everywhere. 

“I just wonder what other councils across the board are doing. Something has to be done, it’s not right.”

Longford florist Stan Hromada described the proposed increase as nothing short of “crazy” at a time of unrelenting energy costs and inflationary pressures.

“Everything is going up because I have had to put the prices up for the flowers and everything,” he said.

“It’s the worst time and everything (cost rises) is happening before Christmas.”

It was a similarly bleak appraisal from Longford grocery store owner Michael Elllis.

The managing director of Fresh Today told of how the firm’s own weekly ESB bill had skyrocketed from €6,000 a week in to a record high of €23,000.

He said while the council’s own soaring day to day expenses were accepted, passing that rise onto already financially squeezed ratepayers was not the answer.

“Our ESB bills have increased by 400 per cent and diesel has gone up by about 30 per cent,” he revealed.

“It will be very difficult for businesses to survive. Wage costs have gone up as well but just in this current climate it is not the right time (ro raise rates). 

“I appreciate the council have costs and they have to meet those but I don’t think it’s a good time to put up rates now.”

Those fears were ones which several local councillors aired at Monday evening’s local authority budget meeting.

“I think a lot of discussion has to take place before we get there,” said Independent Cllr Gerry Warnock, when addressing concerns about how best to balance next year’s budget.

Cllr Warnock said in his view, councils like Longford had been “let down” by Leinster House chiefs in meeting the onerous financial challenges posed by one of the worst energy crises this country has ever borne witness to.

“We are a public service, not a corporate entity,” he argued. “The last thing we want to see if a knock on effect and decrease in spending to key frontline service departments.”

Fine Gael group leader Cllr Colm Murray said the €620,000 gap between income and expenditure while considerable, was not significant when weighted alongside the council’s planned €64m outlay across eight service divisions next year.

He said despite the promise of a rates discount scheme, the potential challenges a ten per cent increase in rates to local businesses day to day cashflow demands was not a risk he was prepared to take.

His Fianna Fáil opposite number, Cllr Seamus Butler offered up a similar view, stressing the imposition of such a rise could spark a “tsunami” of business closures next year.

Councillors Paul Ross, Mick Cahill and Martin Monaghan were equally outspoken with the latter shedding light on his own day to day headaches as a local business owner.

“A rate increase at this time will simply send out the wrong message,” he said, adding that like the UK, Ireland was quite possibly facing the onerous prospect of an imminent recession.

“Being a ratepayer myself, I am very worried as to what is coming down the road over the next six to nine months,” he said.

Councillors are to hold a further meeting on Friday in a bid to secure agreement over balancing next year’s budget.