Proposal to levy rates on empty shops will slash rents

Date Published: 10-May-2010

By Enda Cunningham

Landlords of empty retail units around Galway City will soon be forced to pay commercial rates in a move that has the potential to slash rents for businesses.

Not only would the reduced rents be a lifeline to existing struggling businesses in the city centre, it would serve as an incentive for the creation of new businesses.

The local authority has already had informal discussions with the Department of the Environment seeking legislative changes that would allow them to bill for empty retail units and offices.

Already, Dublin and Cork cities are permitted to impose the levy on empty units.

Fianna Fáil councillor Ollie Crowe said that charging rates for empty units would force landlords to drop rents to find an occupier, making them more attractive for potential tenants.

City Manager Joe MacGrath explained that legislation exists for Dublin City Council and Cork City Council that permits them to levy empty properties, but this is not the case in Galway.

He explained that the City Council’s Head of Finance, Edel McCormack, has had informal discussions with the Department of the Environment to see if legislation can be enacted which would allow Galway to levy rates on empties.

Read more in this week’s Connacht Sentinel