Businesses claim cut in rates will save jobs

BUSINESS leaders in Cork have called for a cut in commercial rates to help secure jobs.

Cork Chamber also urged both Cork City Council and Cork County Council to ring-fence 5% of rates revenue for economic stimulus measures.

Chamber president Ger O’Mahoney acknowledged the “distressed financial situation” facing the councils but he said they have not taken enough notice of the “equally distressed finances” facing rate payers.

“Forty per cent of respondents in the most recent Cork Chamber economic survey stated commercial rates are affecting the future viability of their business,” he said. “It is time that Cork City and County Councils reflected the changed economic circumstances and protect employment by reducing their rates.

“Our councils need to do everything in their power to secure jobs and support enterprise in Cork.”

City and county officials are engaged in a series of meetings with local public representatives as part of their budget preparations.

Mr O’Mahoney said it is imperative local authority rates and charges are brought into line with cost reductions in other aspects of the economy.

“Over the last 24 months, we have seen tangible improvements in the competitiveness of unit labour costs, significant falls in property costs and industrial electricity costs, yet the impact of general deflation has not been seen in reduced rates and charges,” he said.

“Businesses do not object to paying their fair share for local authority services, but just 4% of our members feel they get value for money for the rates they pay.”

He called for 5% of rates income to be ring-fenced and reinvested in targeted economic development activities, including marketing measures to strengthen Cork’s identity, as well measures to protect enterprise and foster future economic development.

And he called on the Government to provide “adequate funding” to local authorities.

“Unless the Government introduces new broad-based revenue streams for local authorities in Budget 2011 to alleviate the burden on the business community as a ‘funder’ of last resort, it runs the risk of being the catalyst in the deterioration of local government,” he said.