Local authorities to be repaid for rates waiver after Cabinet decision

The Cabinet is expected to make a decision on Friday to reimburse local authorities for the three months loss of commercial rates during the coronavirus pandemic.

Minister of State John Paul Phelan told the Dáil that the Government will also consider extending the waiver for businesses that have been severely impacted.

But he said “there is no uniform solution to this”, and stressed it would be very difficult to deal with.

Mr Phelan was speaking during a debate on the impact of the pandemic on local government.

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He said councils were losing an estimated €90 million a month because of the Covid-19 pandemic and the Government had made a €260 million commitment. However, he said, the three-months rates waiver for businesses will be extended “if businesses continue to be forced to close or seriously affected by the Covid epidemic”.

Local authorities are expected to be repaid early in June.

Mr Phelan said some businesses such as pharmacies in big urban centres had been quite quiet during the height of the lockdown period, but “pharmacies in some of the smaller locations on the periphery or even in smaller villages and towns would have been very busy during the lockdown period because people were at home and not travelling, so it is very difficult”.

He said the Cabinet will also decide on an appeals mechanism to ensure that for specific discrepancies in one sector there would be flexibility to deal with each case.

An amount of €260 million has been committed to but a commitment was also given that the period for which rates are waived will be extended if businesses continue to be forced to close or are otherwise seriously affected by the Covid epidemic.

Labour TD Brendan Howlin said the €260 million was only 65 per cent of the lost rates income, but Mr Phelan insisted it was the Government’s intention to meet the “full balance” of lost rates and that was included in the €260 million.

A number of TDs highlighted additional losses to local authorities including car parking fees, harbour dues in some councils and also planning applications. The Minister said these were under discussion and examination.

Sinn Féin TD Maireád Farrell expressed concern that just four local authorities out of 31 had collected vacant site levies with a loss of more than €9 million in income.

The Minister agreed “they should be collecting it, particularly at this time but also outside of this crisis”.

Independent TD Catherine Connolly said the report which highlighted the issue also noted that local authorities had repeatedly brought to the department’s attention the difficulties in collecting the tax, including getting staff to deal the issue, and she said it goes “right back to the department”.