Businesses in Kilkenny received a major boost this week, as the borough council announced a 1.8 per cent reduction in its commercial rates as outlined in the 2012 draft budget.
In addition, Kilkenny Borough Council will absorb the new two per cent VAT increase as it applies to parking charges. There will be no increase in parking charges in Kilkenny city next year, at a cost of €350,000 to the council purse.
The draft budget was produced amid the backdrop of a reduction in national funding. The Local Government Fund allocation was reduced by eight per cent this year, down from €1.56 million last year to €1.43 million.
County manager Joe Crockett said the borough council was operating within severe fiscal constraints, but that the measures outlined therein were targeted to improve economic activity in Kilkenny.
“This [commercial rates] reduction should ease the burden on local rate payers and I would hope that it is also seen as a signal to the commercial sector that Kilkenny Borough Council is demonstrating a real commitment to assisting in economic regeneration,” he said.
Kilkenny Chamber of Commerce has greeted the news as a step forward.
“This decision is a meaningful move to cut costs borne by businesses and also sends a strong signal to the business community that the council has listened to the concerns of business and is working to protect employment,” said chamber president John Purcell.
“The reduction in commercial rates is something which the chamber has long argued for on the basis that in the current economic environment where businesses have seen a drastic reduction all cost lines must be reduced. Commercial rates represent a very serious overhead and so a reduction in the charges to business has long been seen as essential.”
At this week’s meeting of the borough council, members uniformly welcomed the rates reduction.
“It is fantastic that we are in a position to reduce rates by 1.8 per cent,” said Cllr Joe Reidy.
“It shows that this body can work with the business community in the city.”
Labour councillor Sean O’ hArgain praised the council’s timely intervention.
“We were one of the first local authorities to freeze commercial rates,” he said.
“Now we are one of counties giving the highest reduction of rates. We have some of the cheapest rates and cheapest parking charges in the country.”
