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A debate on commercial rates at this week’s meeting of Galway County Council led one exasperated councillor to remark that there would not be a rural pub left in Galway in a few years time if the system was not changed. The method of collecting rates was labelled as ‘outdated and antiquated’ where the amounts paid were in no way related to business income.

The Vintners’ Federation of Ireland (VFI), which represents 4,500 pubs throughout Ireland, has called for reform of the commercial rates system. The VFI believes the commercial rates system is punitive, is a heavy burden on businesses throughout Ireland and is costing jobs in the current climate.

The members of Castlebar Town Council this week agreed to drop the rateable valuation for the year by one per cent. The new rate will be €70.94 for 2011.

Hotels in Galway already under pressure from the recession and low visitor numbers are paying the eighth highest local authority rates in the country with more than €6 million in total paid out in 2009 alone.

Hoteliers have called for urgent action by local authorities in Westmeath to exercise their powers to establish emergency waiver schemes in respect of local authority rates payable by the seriously wounded hotel and guesthouse sector.