Businesses ‘ripped off’ by local authority rate charges

LIMERICK city is Ireland’s blackspot for business rates, according to a survey by employers’ group IBEC.

The lobby group said businesses were being “ripped-off” by local authorities, which had hiked charges by an average of 35% over the last three years. IBEC enterprise director Brendan Butler said rates levels were inconsistent and that businesses in Limerick city were charged 66% more than their equivalents in Kilkenny.

“It begs the question, what extra services are companies in Limerick getting over those in Kilkenny,” said Mr Butler.

IBEC singled out Limerick City Council, Kerry County Council and Donegal County Council as the worst offenders for local authority charges. Charges levied by Louth, Westmeath and Kilkenny county councils were the lowest.

Mr Butler said Galway City Council had hiked its rates charges by 54% over the last three years. This compared with an increase of 25% in Fingal in north Dublin. Income from commercial rates had nearly doubled in five years, from €580 million in 2000 to

€1 billion in 2005, said

Mr Butler. “It is understandable that many companies now view rates as a stealth tax, given that they can rise irrespective of services provided, performance, value-for-money or inflation,” he said.

“Companies are paying more and getting less for rates,” said Mr Butler. “Local government has imposed charges that are unsustainable, inequitable, punitive and lacking in transparency and value-for-money,” he said.

IBEC also criticised the system of exempting State-occupied properties, farm lands and households from paying rates.