Cut Rates & Keep Jobs

Cllr. Kenneth O'Flynn has called upon the Government to begin a revaluation of properties as the last significant valuation of commercial property has been carried out since 2007 the height of the property boom in order to cut rates for business and protect jobs. Speaking on this O’Flynn said; “170,000 properties were valued at the height of the boom back in 2007, no substantial valuation has taken place since. Businesses are paying boom rates but taking in recession receipts “

Continuing on this O’Flynn said; “It is evident that the current local authority rating system, which is used to calculate the commercial rate liability of a business, is not fair. The Valuation Act of 2001 was supposed to bring in a rating system which has enabled safe and certain revenue for the local authorities every year, while also allowing commercial businesses to plan ahead due to the fact they would know their liability for next year, but it does not take account of falling property prices”



Cllr. O’Flynn who is himself a businessman was sceptical stated “many commercial premises have fallen in value by 28 to 30 percent and even though their commercial rates liability are connected to the value of their premises, commercial rates are still allowed to rise by the level of inflation even after a downwards revaluation .”

This in Councillor O’Flynn’s opinion is; “This is producing devastating results for businesses as they are also dealing with shrinking revenue due to the recession which is effectively putting them in a position where costs are rising and income is falling. An article I read in July, said that commercial rates in the city are now almost equating to 30 percent of their rental costs when taking into consideration that some rental prices have dropped to reflect the drop in sales. While rental prices, the value of the buildings and business revenue are all going south, commercial rates have neglected to reflect the change in the economy.”

In conclusion O’Flynn said; “It also must be asked what is the point in valuing every commercial business in the country, when in reality the commercial rates will depend on the fiscal requirements of the local authority as oppose to their value.” Councillor O’Flynn also stated his desire to bring these matters up directly with Minister Brian Lenihan at the next National Executive meeting