Call for reduction in retail rates

RETAIL IRELAND, the Ibec group which represents the retail sector, has called for a reduction in commercial rates. The group has written to the chair of every local authority, as well as to all city and county managers, requesting that retailers be given a 10 per cent rebate on the commercial rates bill they paid in 2009.

It has also called on authorities to suspend upward revaluations “where necessary”.

According to Retail Ireland’s Torlach Denihan, the annual rate of commercial rate valuation has increased by a cumulative 57 per cent since 2000.

“Despite this, some local authorities took the incredible decision to increase the annual rate on valuation for 2010 after misguided increases for 2009, despite the fact that the retail sector was in crisis.”

He criticised in particular a recent revaluation exercise in South Dublin and Fingal county councils which he says has resulted in some retailers facing increases of up to 50 per cent.

Commercial rates are levied on commercial and industrial properties by county, city, borough and certain town councils. The income generated by commercial rates represents approximately 25 per cent of local authorities’ overall income.

Although local government comes under the remit of the Department of the Environment, Heritage and Local Government, the Minister for the Environment has no direct involvement in setting the rates. Instead each authority sets its own level.

The authority uses two figures to calculate the rate charged on each property – the valuation of the property, which is provided by the Valuation Office, a central government agency, and the annual rate on valuation which is set each year by the local authority in question.

Responding to a written parliamentary question last October, Minister for Environment John Gormley said he had specifically requested that local authorities “exercise restraint” in setting commercial rates in their 2009 budgets and that in 2010 he would “continue to keep the approach to rates by local authorities under regular review.”