Chamber urges rates cut to save city traders

Date Published: {J}

BY DENISE McNAMARA

BUSINESSES will go to the wall and more staff will be laid off by struggling companies unless Galway City Council cuts commercial rates by 10% next year.

That’s the prediction from the Galway Chamber of Commerce which is calling on both local authorities to merge some back office operations to curb their costs in order to reduce their dependence on rates.

This was the first year the city council had not increased rates for at least a decade. Limerick councils were among the first local authorities in the country to reduce rates, albeit by just 1%.

The head of the Galway Chamber of Commerce Michael Coyle is now urging Galway to follow their lead and cut rates by 10% for 2011. “It’s quite obvious from the streetscape the number of vacant buildings around the city. There are also significant uncollected rates for 2010 – all those point to the pressure businesses are under by the imposition of this unfair tax,” said Mr Coyle.

“We are of the very strong belief that a reduction in rates for 2011 would send a very positive signal to the local business community that there is an understanding of the difficulties business is experiencing

and the local authority is supporting the retention of jobs.

“Given the challenging economic circumstances business will be forced to pay their rates while having to reduce staff numbers or hours. There is a very direct correlation between this tax on business and jobs.”

For more, read this week’s Connacht Sentiinel.