Ibec looks to election candidates for commitment on €1.6bn rates burden

Ibec has called for widespread reforms ahead of next month’s local elections, including a reduction in commercial rates, saying the €1.6bn contributed annually to local government by the business community remains a substantial burden which could be eased.

“Business funds about one third of the cost of local government, through the commercial rates system and other local measures such as water and waste charges,” noted Ibec’s head of regional policy Reg McCabe.

“We recognise the role played by local authorities in providing essential services, but the costs are too high and there is scope for savings,” he added.

Ibec has also noted that between 2008 and 2013 the commercial rates contribution from the business community increased from 28% to 35%.

“Reductions are now long overdue to allow business to grow and compete and to support growth in jobs,” Mr McCabe said.

In its business manifesto for the upcoming local elections — which is formally published this morning — the employers’ representative body has set out five commitments it wants candidates of all parties to heed. Included are a reduction in local government spending of between 3% and 5% per year, with managers being incentivised to achieve such targeted reductions through efficiency gains, shared services and outsourcing.

A reduction in commercial rates — with savings generated being passed on in full to businesses — is also being called for, as is the introduction of multi-annual budgets.

In this regard, Ibec wants five-year budgets to be introduced in the first year of the lifespan of each local authority, with mid-term reviews also scheduled.

It is also calling for better financial transparency within local government, saying “a major improvement in overall standards of local authority financial reporting — consistent with international reporting standards — is needed.”

Ibec also wants to see a quick implementation of accountability reforms; stating that the commitment made last year by the Government, for the introduction of targeted performance indicators, “must be implemented in 2014”.