Council: Some businesses are struggling to pay bills

AS the recession deepens, an increasing number of hard-pressed Limerick city centre traders are unable to keep up with rates payments, the city council confirmed yesterday.

Acting head of finance at the council Mark Connolly said: “Definitely, these are more challenging times and we have noticed more businesses struggling to pay their rates bills. Things have got progressively worse and some people are in severe trouble.” He said they have given extensions into 2009 to some businesses for rates due last July.

While the council was prepared to discuss repayment reviews with retailers with cash flow problems, he said there cannot be any question of write-offs, due their own cash demands.

Mr Connolly said: “But we have to keep in mind that 2009 rates bills will be due in February and July as well and we all need to keep this in mind.” Mr Connolly said there had been a marked increase in the number of business people in the city approaching them in recent months, wishing to come to arrangements to pay their rates over a longer period of time.

Of the council’s €85 million budget, €30m comes from rates.

Mr Connolly said: “We have to be reasonable as we know we are in unprecedented circumstances at the moment. Things are very difficult and ultimately we have to strike a balance and get in the rates in a business like way. We encourage people to come in and sit down and talk to us, rather then we having to go to them. There can’t be a write-off because somebody has not got the money. We can review payments.” He said the council also has considerable financial commitments and must ensure these are not threatened through lack of money.

In dealing with retailers who have hit hard times, he said the council is very aware of the importance of encouraging city centre trading.

Mr Connolly said: “We need income and revenue to survive. It is not an open and shut situation and we take into account people have businesses to run and have short term difficulties and we can be flexible and review payments... as it is in all our interests that city centre businesses survive.”