Warning of job losses if councils fail to peg rates hike

LIMERICK Chamber of Commerce yesterday warned jobs will be lost if Limerick county and city councils don’t peg rates increases to the absolute minimum.

President of Limerick Chamber, John Walsh appealed to the two local authorities to keep increases to a minimum and not to allow any increases exceed the projected 3.5% rate of inflation. He said: “Historically, inadequate exchequer funding has forced local authorities to source necessary funds from the business community through commercial rates, water charges, development contributions and other charges. All of these have increased year on year and have damaged competitiveness in the process.”

He commended Limerick City Council on last year becoming the first local authority to reduce its annual rate but said more needs to be done.

Mr Walsh said: “The continued upward trend in local authority charges for business is unsustainable and runs counter to broad national enterprise aims. Local businesses are already facing significant increases in wage and energy costs and any additional increase in local authority charges will further serve to undermine their competitiveness.”

Rates and service charges, he pointed out, are not linked to ability to pay and have a disproportionate impact on smaller businesses, many of which have not benefited from corporation tax cuts.

This would enhance the competitiveness of local businesses and protect local jobs.

Trimming rates bills he said would increase Limerick’s attractiveness as a region in which to locate new business, thereby driving the local economy and creating employment.

Limerick City has seen rates increase by 49.43% in the last 10 years making it the most heavily rated centre in the country. Limerick County rates have increased by 65.27% in the same period.

Limerick Chamber also called on Oireachtas representatives to put pressure on central Government to support the competitiveness of local enterprise and ultimately protect local jobs at this difficult time by increasing funding to local authorities so as to avoid a rates/charges hike.

Mr Walsh said: “The core issue of the wholly inadequate level of support from central Government to local authorities needs to be addressed.”

He said when commercial rates, water service charges and development contributions are combined, businesses in Limerick City contributed 52% to the City Council’s expenditure last year while central Government contributed 21%.

He said: “Last year Limerick County Council increased their commercial rate by 3.5%. When commercial rates, water service charges and development contributions are combined, businesses in Limerick County contributed 37% to the County Council’s expenditure while central Government contributed 39%.”