People in Kilkenny are remaining defiant in the face of this week’s austerity Budget, with retailers and the public both seeking ways to cope with cuts and new taxes.
As the €100 household charge is brought to bear, over 800 people in Kilkenny have signed a petition against the charge. Minister Hogan said that the Government remained ultimately committed to a property tax, which will fund locally delivered services.
“The charge is an interim measure and proposals for a property tax will be considered by the Government in due course,” he said.
“The charge has the potential to raise €160 million annually: the revenue will be paid into the Local Government Fund for distribution to local authorities and will replace Exchequer financing previously provided by the Department.”
Busineses, too, are feeling the pinch.
On James’ Street, several retailers are intending to band together under one roof, sharing rent, rates and other expenses to continue providing their goods and services, and defy the current economic climate.
Local retailer Italo Andrade, who owns Celebrate It, sees it as a way for local shops to survive while working together. While rents, rates and bills are ever-present, he says at least some landlords are willing to negotiate. and work with tenants to improve things.
“If you come down James’ Street at 4pm on any day, there are maybe three or four people on the road. Now with this budget, it will be worse,” he said.
“At one stage, I had four people working here. Now it’s just myself. And it’s the same for every shop.”
Deputy John McGuinness says the retail sector is hanging on by a thread.
“The ministers unveiled no reform on issues like commercial rates, or upward only rent reviews, despite the commitment that was given,” he said.
“Instead, retailers now have a two per cent VAT increase.”
The u-turn has caused a few blushes, concedes Fine Gael’s John Paul Phelan.
“The constitutional lawyers told us it could not be done,” he said.
“It is embarrassing, but it says more about our constitution. The legal advice says we can’t do it without compensating landlords.”
Tourism is one of Kilkenny’s biggest industries, and there is some positive news there. The south-east branch of the Irish Hotels Federation has lauded the benefits that the reduced VAT rate of 9 per cent has had for the hospitality sector. However, it has criticised the cuts to the capital allowance schemes, which the IHF says will only worsen the sector’s existing debt problems.
“Either way,” says Italo Andrade, “the situation won’t get better by itself. The public must adopt a new mindset. We need to change our attitude about this. We can go to the pub, and sit there and complain, or we can actually improve things locally by working together.”
