Retailers call for commercial rates cut

Retailers today called for commercial rates to be cut by at least a fifth during the economic downturn.

Torlach Denihan, of Retail Ireland, said thousands of jobs have been lost in the sector while shop owners are being forced to cut prices.

The IBEC group demanded Environment Minister John Gormley direct all local authorities to cut commercial rates by at least 20% in view of the crisis facing the retail sector and the consequent threat to employment.

Letters have also been written to Taoiseach Brian Cowen and party leaders Enda Kenny and Eamon Gilmore to request their councillors vote for the decrease when the local authorities vote on the matter during the autumn.

“We have sought a reduction of at least 20% in commercial rates because the retail sector is facing an enormous challenge in maintaining employment due to the severity of the current recession and the unprecedented decline in consumer spending,” said Mr Denihan.

“Retailers are cutting prices by negotiating lower prices from suppliers, lower rents from landlords and are reducing their costs generally.

“Thousands of jobs have already been lost in retailing.

“Local authorities must play their part in the retail sector’s efforts to regain lost competitiveness and safeguard employment.” Mr Denihan claimed that since the turn of the decade the annual rate on valuation has increased by a cumulative 57% nationally.

“Last year we were strongly critical when some local authorities took an irresponsible decision in late 2008 to increase the annual rate on valuation despite the fact that the retail sector was in crisis,” he added.

“We are particularly disturbed that a revaluation exercise completed in South Dublin and underway in Fingal is further aggravating the problem, resulting in some retailers facing increases of the order of 50%.”