THE Irish Hotels Federation is demanding an end to the exemption of bed and breakfast accommodation from local authority rates.
Mr Gerry O'Connor, IHF president, yesterday claimed around 14,000 B&B premises are exempt from paying rates. "Local authority rates should be levied on any premises offering accommodation on a commercial basis," he said.
The basis on which rates are struck is a further cause for concern, Mr O'Connor added. Since the abolition of domestic rates, the yield from commercial rates has been running at three times the rate of inflation, he said.
"The yield from commercial rates [in the past 10 years] has increased from £164 million to £322 million - an increase of 96 per cent, whereas inflation has totalled only 32 per cent in the same period," Mr O'Connor said. "We have no difficulty paying our fair share of rates and charges but we want a more balanced and equitable system introduced."
The provision of £7 million in the Operational Programme for Tourism was a clear indication of the desire of the Minister for Tourism and Trade, Mr Kenny, to make the smaller hotels, in particular, better able to compete internationally, Mr O'Connor added. "However, where is the logic in a system where Minister Kenny gives us the incentive to upgrade our product only for Minister [for the Environment] Howlin to penalise us with higher taxes when we do so."
