Business group urges widening of rates' base

The Dublin Regional Business Alliance has called for a broadening of the existing rates base to include all commercial entities…

The Dublin Regional Business Alliance has called for a broadening of the existing rates base to include all commercial entities and Government buildings.

In a position paper, the alliance cites the findings of a survey by the Dublin City Centre Business Association which showed that businesses were bearing the brunt of rate payments, as 34 per cent of all rateable property was exempt from paying rates.

It is also seeking an immediate cap on rates increases to ensure they do not rise above the rate of inflation. The alliance claims local authorities have received Government permission for a 9 per cent increase, four percentage points above the existing cap of 5 per cent. In a statement, the alliance said this increase "flies in the face" of stated Government policy to control inflation and called for this instruction to be immediately repealed.

The new alliance comprises the Dublin Chamber of Commerce, Dublin City Centre Business Association, Dun Laoghaire-Rathdown Chamber of Commerce, the Irish Business and Employers' Confederation, South Dublin Chamber of Commerce and Swords-Fingal Chamber of Commerce and represents over 5,000 businesses in the Dublin area.

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The alliance welcomed the modernisation of the valuation bill but expressed concern that if the valuation process is phased, and begins in Dublin, businesses in the city will be forced to operate at a competitive disadvantage.

The business sector is a major contributor to local authorities. In 1999, it contributed £184 million (€234 million) to local authorities in the Dublin area, 45 per cent of the national total. When other service charges are taken into account, businesses can contribute as much as 50 per cent to the local authority's annual budget.