Rates hike would be the last straw for struggling businesses

Date Published: 29-Jun-2011

Struggling businesses in Galway could be set for a shock financial blow, after it emerged this week that a full rates revaluation of all premises in another local authority area is being based on rent levels from 2006.

If a similar valuation date is employed when commercial and industrial premises in Galway are revalued, businesses here could face massive hikes in rates based on rent from the height of the property boom.

The news comes as a crowd of between 600 and 700 business people are expected to attend a meeting in Galway city next week demanding affordable rates for employers and reform of the rates regime.

The mass meeting, planned by voluntary organisation Employers for Affordable Rates (EAR), will hear criticism of the system in which struggling businesses have their commercial rates assessed.

During a discussion on rates by councillors this week, the County Council’s Head of Finance Ger Mullarkey suggested they should ‘hold fire’ on the rates issue, as the Valuations Office is currently revaluing every business and commercial premises in Dublin City Council’s jurisdiction – and basing the valuations on rent levels from 2005/6.

The Valuation Office – the State property valuation agency – is currently in the process of revaluing commercial and industrial properties for local authorities across the country.

At the moment, it is revaluing Dublin City Council, which will take up to two years, according to Mr Mullarkey.

It has already completed its revaluations in Dun Laoghaire Rathdown, Fingal and South Dublin County Councils.

See full story in this week’s Connacht Tribune.