Limerick city stores pay highest rates in country

Jimmy Woulfe, Mid-West Correspondent

Liam Dwan, general manager of Brown Thomas, which is believed to pay almost 190,000 yearly in rates, said: “I would like to ask the question, what are we getting for our money?”

His city centre store employs nearly 200 people.

Due to the high rates, a number of retail outlets have already moved to shopping centres in the suburbs where the much lower county rate is charged.

Based on its size, a valuation is put on every business premises and this is multiplied by a figure called the “rate on valuation”.

The rate on valuation for Limerick city is E75.69.

But the rate on valuation in Co Limerick, which covers some suburban shopping centres, is just E56.08.

Clare’s county rate, which also covers part of the city suburbs, is E61.24 and in North Tipperary E58.41.

Mr Dwan said a store the same size as his located in the city suburbs would pay about 50,000 less in rates. “Our rates cut into our bottom line on top of all our other overheads. If you pay this kind of money, you have to ask, what are you getting back? It is burning a major hole in our pocket and we are not getting an awful lot back in services.”

He said there was a lack of action by the city authorities on major issues to help city centre shopping such as more pedestrianised streets, litter control and less expensive city centre parking.

“Effectively, we are getting no return for the money we pay in rates,” Mr Dwan said.

He said business people were aware that the council had a restricted rates base and that very sizeable rates revenue from the suburbs go to Limerick County Council.

“But we are not getting the level of service for the money we pay,” he said. Mr Dwan claimed another well known brand retail outlet was transferring from the city centre to Dooradoyle Shopping Centre due to the lower county rate.

“This is a negative for all city centre trading,” he said. “The more you have to offer shoppers the better.”

Limerick Chamber of Commerce has repeatedly voiced concern at the negative impact of the huge city rate. “It does not help in trying to attract new retail outlets to Limerick,” a spokesperson said.

Limerick City Council insists the rates issue can only be resolved by an extension of the city boundary to take in the suburbs which generate almost 10 million a year for Limerick County Council.

The county council, on the other hand, insists they must retain the suburban rates in order to provide proper services throughout the entire county.

A boundary extension would require a ministerial order and Fianna Fáil members of Limerick County Council said yesterday there was no likelihood of a change.