This article is from page 10 of the 2011-05-03 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 10 JPG
ANY help for the County Clare’s struggling rates payers will only be introduced hand-in-hand with new taxes, The Clare People has learned.
Businesses around the county owed more than € 5.6 million to Clare County Council when figures were last compiled in December of 2010. This represent a massive increase on the € 600,000 end of year rates arrears figure recorded by the local authority in 2006. Much of these arrears comes from the tourism sector where a number of Clare flagship tourism businesses have been unable to pay their rates in full in recent years.
Speaking to The Clare People last week, the Minister for the Environment said that changes to the current rates situation would be tackled by “broadening the base” by which Clare County Council funds itself.
“We are actually signed up to the EU/IMF agreement – the previous government signed up to it and we are obliged to implement it. This year we will be bringing forward proposals for utility charges and that will broaden the base of financial support for local authorities and hopefully take the pressure off the rate payers,” he said.
“There are significant cash flow problems in every business and it is not just because of rates, there are other issues as well. We will be asking the valuation office to apply more resources towards carrying out re-valuations which are essential throughout the country – this is too slow at the moment and will take too long. I am conscious at the moment of having the costs of local government as low as possible to allow business people to protect employment and to create other employment. There are problems in Clare but these problems are replicated right around the country and this will need a national response.”
Besides speeding up the process by which businesses can have their rates re-valued, the Minister has also agree to examine Irish Hotel Federation proposals to completely change the way in which rates are calculated.
“We have received a number of submissions about that [changing the way in which rates are calculated] and I am looking at them at the moment. I have asked the department to examine how we could actually improve the situation with regards to deploying resources to the valuations office – which is a matter for the Department of Finance – but also to look at ways that we can get local government to broaden its tax base and the opportunities in other ways and to take the pressure off labour intensive industries like the tourism sector,” he said.
Meanwhile, Clare local authorities have restated their commitment to work with Clare people in solve individual rates arrears.
“Calculation of rates is primarily determined by the valuation attributed to the property. This is determined by the Valuation Office independent of the local authority. Pending any change in the current system we will continue to work with rate payers to put in place flexible payment arrangements to discharge rates due,” said Ennis Town Manager and Director of Services with Clare County Council, Ger Dollard.