Sir, – Dublin City Manager Philip Maguire (August 27th) gives an excellent explanation of the mechanics of the rate valuation system and to some extent a good defence of how local authorities can justify increases in rate charges for business.
Unfortunately a couple of hard business realities are not considered in the present valuation and charge formula, without which both social injustice and economic decline are guaranteed.
First, despite years of austerity – and for reasons better known only to themselves – our local and national decision-makers simply fail to understand that Ireland is bankrupt. We are in an IMF bailout programme. When taxes and rates are increased there will inevitably be business closures and job losses. There is no slack left in the public’s pockets or in local business profitability. All and any future rate increases will lead directly to closures and job losses.
The second serious misun- derstanding is that the present application of rates policies is punishing hard work and entrepreneurship as it rewards inertia and waste. In her informative article “Owners of vacant sites contribute nothing to local authorities’’ (Home News, August 5th), Olivia Kelly raises the lid on the crux of the problem. And as many vacant sites and indeed vacant residential and commercial properties are in the ownership of local authorities or the State /Nama, present myopic thinking, indolence and waste will inevitably prevail.
The property market is so much more than just bricks and mortar for sale or rent. Market price and accessibility determine enterprise survival and indeed civic and social equity (or the lack of). Property is a finite quantity consisting of every inch of land – with or without built structures. When a site, office space, dwelling house or factory is vacant and not generating an income stream, it is not contributing its full potential to the exchequer, and it is promoting scarcity by putting upward pressure on all other rent or purchasing prices presenting in the market place.
A simple solution would involve publishing the average rental cost of any square metre of a site or office/dwelling in any given local area. Apply penal progressive taxation the longer any property is vacant, right up to the annual rental parity for similar property yields. Such a policy would: 1. Remove idle property speculation. 2. Increase commercial activity in all towns and cities. 3.Allow entrepreneurs and established business to start up and expand. 4. Eventually lead to a reduction of rates as the burden would be shared by many more viable enterprise. 5. Bring commercial reality to the rental/lease market and indeed sanity to rent reviews. 6. Most importantly, it would put life back into the centre of our towns and cities where empty properties are depressing both the spirit and cultural life.
Without debating the above, Ireland will always be dependent on the IMF and as a people we will remain squeezed by the Famine mentality and oppressive landlord entitlements. This week I had a last “usual cuppa” at my favourite cafe. On Sunday this establishment closes after being in business for the past 30 years. Lease price increase demanded and end of story. With the tragedy of several job losses, its closure takes the heart out of its locality.
When will the stupidity end? – Yours, etc,
CIARAN WALSH,
Kincora Drive,
Clontarf,
Dublin 3.