Naas shop fronts lying empty could be thing of past

Kildare North TD James Lawless is welcoming a commitment from Minister Simon Coveney, that a comprehensive public consultation and review of the Commercial Rates System will soon be implemented.

Deputy Lawless said: “Commercial rates are a major burden on struggling businesses throughout the country and there are many aspects of the system that requires review and reform. For example, the system of State valuations is unwieldy and does not take account of commercial reality. On-the-ground valuations of commercial properties often bear no relation to reality. Many struggling businesses have been stuck with a valuation undertaken during the boom years, when property prices were at their highest, and have been struggling to pay these inflated commercial rates ever since. More regular and fairer valuations must be undertaken in each area. "

He said:“Local authorities derive 28% of their finance from commercial rates. Retailers in towns nationwide are burdened with financing local government to an unsustainable level. Small businesses need greater predictability in how rates are calculated and more importantly, that they are proportionate and fair.

Deputy Lawless added:"In Naas and other Main Streets in the County we see many shop fronts lie empty due to the immediate costs of setting up a business in a town. Rates are one of the main elements blocking people from starting their business or helping current businesses succeed.

"When a member of Kildare County Council I raised the issue of rates a number of times, including trying to bring in rates incentive for those owners who rent out above ground accommodation, ordinarily above their own shop, on the Main Street with a view to this policy fostering local economic growth".

“Out of town, large shopping developments with reduced commercial rates allows business to grow and expand leaving town centres suffering. We need to breathe new life into our towns and villages and encourage start-ups to take the risk and start generating job creation. "

"This review will also consider the future of the Commercial Rates System as it is currently structured. At present, the entire weight of the commercial rate burden falls on traditional bricks and mortar premises across Ireland. In contrast, more nimble e-businesses are not subjected to a commercial rates tax as they do not have premises. It is time to re-evaluate the long term viability of what is in effect a property tax on businesses and in an age when business is becoming increasingly mobile,” concluded Deputy Lawless.