Local charges a burden for businesses

I REFER to the article entitled “Managing council budgets difficult” (August 2) specifically referring to criticisms made by Cork City Fine Gael Cllr Jim Corr, regarding the united efforts of Cork-based business organisations to reduce the burden of local authority rates and charges on the business sector.

In respect of Mr Corr’s comments, “The suggestion that a reduction in the levels of local government charges would be the solution to Cork’s dangerously high unemployment numbers is wrong, and a refusal on the part of the commercial sector to face the realities of life in 2010”, and “the chambers of commerce should recognise this reality and make their case to Government”, we believe these are completely off the mark and display a lack of understanding of the difficulties being faced among businesses by Cllr Corr.

In recent times, there have been tangible reductions in business costs including unit labour costs, property costs and industrial electricity costs; while over the corresponding period, there have been no reductions in local authority charges. The payment of commercial rates and other local authority charges is currently placing a significant burden on businesses, many of whom are not currently profitable and are facing job reductions, in addition to the risk of closure. This presents a very real challenge should we not see a reduction in local government charges in the 2011 council budgets. It is extremely unsatisfactory that in an era where local government reform is most needed and at a time where €€511 million in savings and efficiencies have been identified for the local government sector in the recent compelling report by the Local Government Efficiency Review Group, that such balanced information is completely ignored in the councillors’ comments.