Dublin Corporation management is proposing an increase of 3.2 per cent in commercial rates for the coming year, to £37.18 in the pound, members of the city council's finance committee heard yesterday, when the city manager, Mr John Fitzgerald, presented his draft estimate of expenses for 1998. The estimates and the proposed rate go before the city council for approval at next month's full city council meeting.

The increase is in line with guidelines from the Minister for the Environment, Mr Dempsey, who indicated to local authorities that commercial rate increases should be of the order of "inflation plus 2 per cent", Mr Fitzgerald told The Irish Times after the meeting.

The estimates put a figure of £270.3 million on running the capital next year. Income from sources other than rates will amount to £165.7 million.