An increase in commercial rates in 2009 would have serious consequences for businesses already struggling with rising costs and decreasing turnovers, Athlone Chamber has warned.
The chamber is urging Athlone Town Council, as well as Westmeath and Roscommon County Councils, to apply restraint when setting local authority charges for 2009 and to ensure that there is no increase on rates.
It believes there is little justification for increasing charges to business as the rate of inflation is predicted to be zero per cent next year, and local authorities are gaining additional income from the recently introduced levy on second properties.
In addition, the chamber points out that Athlone Town Council will have the benefit next year of full rates from both Golden Island Shopping Centre and the new Athlone Towncentre, which will greatly increase its revenue.
According to newly appointed president of Athlone Chamber, Aengus O’Rourke, the continued upward trend in local authority charges for businesses is unsustainable.
“Businesses in the Athlone area are already facing significant increases in wages and energy costs, and we know from talking to our members that insurance costs are also on the increase. Any additional increase in local authority charges will further serve to undermine their competitiveness.”
Mr O’Rourke believes that potential increases can be avoided with prudent financial management by Athlone Town Council, Westmeath County Council, and Roscommon County Council.
“If they examine their operations to identify potential savings and efficiencies, like all of us in business now have to do, perhaps even a reduction can be achieved. In the longer term this would enhance the competitiveness of local businesses, protect our local economy, and most importantly protect our jobs.
“Such a move would also increase the attractiveness of the greater Athlone area as a region in which to locate a business, driving our local economy and even creating employment.”
According to Mr O’Rourke, businesses located in the Athlone area have seen rates increase by approximately 67 per cent from 35.90 in 1998 to 60.12 today. The Westmeath area has seen rates increase by approximately 57 per cent from 32.86 to 51.75 per cent, while in the Roscommon area rates have increased by approximately 78 per cent from 42.85 to 76.28.
Water charges have also increased by 11.4 per cent in Roscommon between 2002 and 2007 and in Westmeath by 77.9 per cent, a significant portion of which is paid by the business community.
“The system must be rebalanced to provide a more equitable basis for local authority funding ensuring that businesses, households, and central government are each required to pay their fair share - applying the polluter/user pays principle, as recommended in the Indecon Report on local government financing,” said Mr O’Rourke.
He is calling on all local representatives, in each of the three local authorities, and all local Oireachtas members, to put pressure on central government to support the competitiveness of local enterprise and ultimately protect local jobs at this difficult time.
“Businesses do not object to paying their fair share but since the abolition of domestic and agricultural rates, they are the only ones shouldering this burden...The inadequate level of support from central government to local authorities needs to be addressed,” he concluded.
