The rates system is designed for an 'era that doesn't exist anymore' - Leitrim councillor

Commercial rates were increased by 5 per cent in Leitrim on Monday, where councillors passed the draft budget for the year ahead.

Cllr Cormac Flynn stated that there were a number of issues facing traders and asked if was possible to find another strand of revenue rather than raising rates. "We've spoken about challenges facing businesses in relation to the minimum wage increases, insurance increases, online threats, globalisation and multinationals, unforeseen weather events such as storms, floods and works that interrupt business for many high street traders. Now we are going back to them looking for more money again."

He continued: "We spoke about 400 short-term lettings. Is there a way of imposing a small rate on those? Online retailers that don't have an on street presence so that we don't have to keep going back to our on street traders."

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Cllr Irene Guckian Rabbitte stated: "We need more funding from government and can't keep going back to the pot and the traders on the street and LPT and drawing from the same pot the whole time. It is so obvious there is not enough money coming from the top down; from government."

Vincent Dwyer, Head of Finance with Leitrim County Council outlined the budget and answered questions from members in relation to the various categories.

Responding to Cllr Flynn, he said: "It is something we followed up on" but added that "the issue the valuation office will have - once they tread on to what they deem is domestic property - they are always under the presumption that it's domestic."

He added: "When dealing with those who are renting a room, they system doesn't really provide for that and it's been an ongoing issue over the years in other guises.

He said that he has raised the issue with colleagues on the Local Democracy Taskforce. He said: "What you are really advocating for is a sales tax."

Cllr Flynn said that he felt the rates system is designed for an "era that doesn't exist anymore and we need to bring it into now. Hopefully we can increase the net and reduce the burden on existing traders. "

He added that he was not referring to those who run businesses from houses (not B&Bs etc.) "that no lives in from one end of the year to the next" with Mr Dwyer responding that if someone is "running a business from a house that is a commercial property in effect, then definitely we've no issue sending that to the valuation office and following up on it and we do that on a regular basis."