Dublin businesses have begun to receive letters threatening legal action and inclusion in Stubbs Gazette over failure to pay fees due to Dublin Town, the capital’s business improvement body.
Correspondence issued on behalf of Dublin City Council and Dublin Town has advised that recipients avoid “embarrassing” and costly court appearances, prompting anger and distress among small and medium operators.
Dublin Town was formed in 2007 as a not-for-profit business improvement district (Bid) covering certain parts of the city, mandated by plebiscite every five years. It represents about 2,500 businesses who pay fees in addition to normal commercial rates.
However, a number of them view it as a double-taxation and question the value of the organisation. Dublin Town has defended its performance in promoting economic activity in the capital.
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Now, in response to a number of operators in arrears on fees – calculated as a proportion of their commercial rates – Stubbs Gazette has issued payment demand letters for Dublin City Council on behalf of Dublin Town.
“We would like to bring to your attention that this debt has been passed for full debt collection to Stubbs Gazette and we will pursue this claim until it is recovered in full,” the letter states.
“It is in everyone’s interest to spare you the additional expense and embarrassment of a court appearance. We strongly advise you to take this opportunity to reach an amicable solution.”
Stubbs Gazette said that, unless paid within five days of receipt, the businesses in question would be posted on its late payment register.
Stubbs Gazette is a publication with details of insolvencies and court actions taken against Irish businesses.
The move marks the latest escalation in tensions between some city businesses and Dublin Town.
Damon Crowe, proprietor of the city’s Red Torch Ginger restaurant who received a letter about two weeks ago, said footfall has been collapsing in the city centre.
“Not only are we paying the highest rents, we are paying the highest rates and now we have to pay this additional [Dublin Town] bill as well. This, on top of the warehoused taxes [following the Covid-19 pandemic] that people have to pay, are wiping people out,” he said.
“You cannot get loans from banks if you are in Stubbs Gazette. So if you need extra financial funding…[you] wouldn’t get it. It ruins your credit rating. I know one individual who is suicidal at the moment from this.”
Another business owner and one-time backer of Dublin Town, requesting anonymity, said he was angered by the Stubbs Gazette threat.
“The city centre has been decimated. And there is an exact correlation between what [the official] footfall figure is and how much you are down in your tills,” the person said.
“This is just the straw that broke the camel’s back for me. I’m just really fuming.”
In response, Dublin Town noted that since its establishment, it has been given successive renewal periods by rate-payer vote every five years.
“[We have] an obligation on behalf of those members who have paid their contribution to ensure that all members meet their contributions,” a spokesman said.
Although it would not say how many businesses were in arrears or how much money it was owed, it said a “very small number of members are in default”. Each had received multiple letters, offered payment plans and invited to seek possible reductions.
Dublin city councillor Mannix Flynn, a long-time critic of the Dublin Town model, raised the letters with council officials, saying many businesses feel “conscripted” into the payment system.
“They struggle with the demands that are placed upon them by a double rate. Many feel that Dublin City Council already do the job [of Dublin Town],” he said.
“They say being placed in Stubbs Gazette places their business in jeopardy and undermines their credibility with their creditors and suppliers … and business owners are stressed and full of anxiety having received notices.”
