Business Lobby Group Wants Commercial Rates Slashed

Business & Finance - Economy

Monday, 18 October 2010 16:01

Written by Noel Cotter

Retail Ireland, the IBEC group that represents the retail sector, today called for a 20% cut in commercial rates in 2011.

Retail Ireland director Torlach Denihan, said: "Retail Ireland is writing to An Taoiseach Brian Cowen, Enda Kenny TD, and Eamon Gilmore TD, as well as the chairperson of every local authority, city and county managers to ask for a reduction of 20% in commercial rates when the local authorities finalise their annual budgets over the coming weeks.

"Retailers are competing to attract customers by cutting prices. Last year recorded the largest ever annual fall on record in retail sales, and CSO data shows that the value of retail sales has fallen by 25% since 2007. Unfortunately the high cost of running a retail business has not declined, and this has contributed to the loss of over 47,000 jobs in the sector. Unless retailers can regain lost price competitiveness, the sector will struggle to avoid further redundancies.

"Over the last decade local authorities have been able to fund many desirable projects through development levies and commercial rates and since 2000 the annual rate of valuation has increased by almost 60% nationally. This is now grossly out of line with economic reality, and these types of government-controlled costs must be cut to protect from further job losses.

"Retailers need all local councillors to support a reduction in commercial rates to ensure that local retailers remain viable and retain employment," concluded Mr Denihan.