Cork start-ups in line for rate rebate under plan
Cork County Council is to examine a proposal to consider a sliding scale rebate on rates to encourage fledgling businesses to develop, by taking over unused buildings in towns and villages and create much-needed employment.
Cllr Sinead Sheppard (FG) won cross-party support for her motion to offer start-up businesses the chance to secure a rebate.
She proposed businesses pay their rates as agreed, but get a 100% rebate for their first year, 50% in the second and finally 25% in the third year as an incentive.
The former star of pop band Six, who now runs very successful dance schools for children in east Cork, said many businesses folded in their first year as they did not have the cashflow to pay out overheads such as rates.
Without that burden, she maintained that a majority which went to the wall might have survived.
Ms Sheppard said the scheme should only be open to small and medium-seized enterprises.
“Even in this improved economic environment, we can all relate to how difficult it is to start up a business. Local government support is vital,” she said.
“I want a new three-year staged rates for small to medium-sized business which open up in units which have been vacant for a year. Over half of new businesses fail in first year.
“In the end, it would provide more rates for the council and benefit communities and the economy,” she added.
Deirdre Forde (FG) commended Ms Sheppard for “thinking outside the box”, while party colleague Noel O’Donovan also described it as an excellent motion. He said every councillor was aware of vacant premises in their towns and villages which could benefit through such a scheme.
The motion received cross-party support, but Seamus McGrath (FF) said it should be referred to the council’s economic special purposes committee for more consideration.
“There are risks though, as it would put some existing businesses at a disadvantage,” he said.
“One of major stumbling blocks to businesses is cashflow in the first year,” Susan McCarthy (FG) said.
Donnchadh Ó Laoighaire (SF), in support, said the whole thing “should be teased out” at the council’s SPC.
Council chief executive Tim Lucey agreed the proposal would “require serious analysis at SPC”. He urged some caution, saying such a move “could be deemed to be anti-competitive” against existing businesses.
Mr Lucey said the council’s Economic Development Fund already did its best to help fledgling businesses get off the ground, but added that he understood where Ms Sheppard was coming from.
He agreed the proposal deserved more scrutiny and councillors agreed with him.
The matter was referred to the SPC for serious consideration and a report is expected shortly. The full council will debate the matter at a later date.
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