Firms ‘able to pay rates will be made contribute’

Businesses in Kerry which can afford to pay their rates but are not doing so will be made pay up in 2014, county manager Tom Curran warned yesterday.

He also rejected suggestions that rates were having a major impact on the overall cost of running a commercial enterprise, pointing out he was not seeking an increase in rates this year and had not done so for five successive years.

“Electricity, oil and gas costs have a far greater impact (than rates). Since, 2009, for example, diesel has gone up by 47% and gas by 30%,’’ he said

Mr Curran presented the Kerry County Council budget of almost €99m, a 16% reduction on last year, for 2014. There’s a 10% cut in road grants.

Commercial rates make up 21% of the budget, or just over €21m, and are the biggest source of revenue over which the council has control.

Mr Curran said he was mindful of challenges faced by businesses and the council would continue to review businesses on a case by case basis.

“A distinction, however, needs to be made between those businesses who have genuine trading difficulties and those apparently unwilling to pay. The latter businesses will be pursued through the appropriate channels,’’ he told a meeting in Tralee.

More than 50% of ratepayers paid less than €2,000 per annum and 25% less than €1,000, he stated.

Head of finance Angela McAllen described 2013 as ‘’most challenging’’ for rates collection, with 76 cases brought to court for non-payment. More cases are expected early this year.

She said considerable emphasis would be placed on collection in 2014, including arrears, and extra staff would be deployed.

Ms McAllen said the estimate included provision for irrecoverable rates of almost €3m relating to vacant properties and settlements for businesses in difficulty.

She was also critical of the Valuation Office for not valuing new commercial properties.

Mr Curran, meanwhile, said the council was continuing to look for better value in all of its services.

Cost savings had been achieved in areas such as plant hire, trade services, road-making materials, telecommunications, advertising and other activities.

Also, in-house staff were being used as much as possible to avoid the engagement of outside agencies, he said.

Tenants escape tax

Kerry County Council will not pass on the property tax to its 2,238 tenants — for this year.

The council is liable for €201,510 tax in respect of its housing stock and county manager Tom Curran had initially proposed adding €90 to the annual rent per house to cover the tax.

Councillors, however, had indicated in advance of yesterday’s budget meeting they would strongly oppose what would have been a politically unpopular increase among tenants, especially with local elections this year.

Mr Curran looked at other means of raising the money which he will now transfer from a fund used to upgrade houses and from funds accrued from the sale of plots for housing land.

But, with the abolition of town councils, the county council would soon have more than 4,000 houses on its books, he pointed out.

Mr Curran made it clear the council would not be able to find other sources of funding the property tax, next year, adding a national review of housing rents was also under way.

The meeting was also told that while the council had an extensive amount of land for housing, it was unlikely any new social housing would be built in the foreseeable future due to government policy.

Independent councillor Michael Cahill called for a programme to purchase private houses to help reduce council waiting lists.

“There’s great value to be got in the private market, at the moment, and we should be making submissions to the Government in that regard,’’ he said.