Proposed Rates Cut in Limerick City a Welcome First Step for Business

Chambers Ireland has today (13/12/12) welcomed Limerick City Council’s proposed budget, which includes a 5% cut in business rates and two separate funds for marketing and events, and called on councils throughout Ireland to recognise how such moves can stimulate the economy, support businesses and create new jobs. It also shows the potential cost savings that can be achieved through integrating Local Authorities by achieving scale.

Speaking this afternoon, Seán Murphy, Chambers Ireland Deputy Chief Executive said, “Businesses in Limerick City provide almost 48% of the entire revenue raised by the Council. This reduction in rates is a welcome recognition of the pressure they are under in the current economic climate. Combined with the establishment of two funds to support marketing and events, this is a significant boost to businesses in Limerick.”

“However, more must be done to ensure the rates paid by businesses in the City are in line with those paid in the County Council area. Even after this reduction, there remains a differential of 20%. Common business charges by 2015 in both the City and County areas are promised in the ‘Putting People First’ document on Local Government reform, issued by the Department of Environment, Community and Local Government: clearly there is some way to go in achieving this.”

“It’s also noteworthy that the Council’s funding from central Government is due to increase by 3.72% this year. This shows how Government support can ease the pressure on Councils, enabling them to assist the business community. Local Government is one area where the Public Service Agreement has generated significant savings. It is now time for other Government departments to ‘bite the bullet’ and identify areas where similar and greater savings can be achieved,” he concluded.

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For further information contact Amy Woods, Chambers Ireland on 01 400 4319, 086 6081605 or email amy.woods@www.chambers.ie.