Commercial rates and equine classification
Deputies raised sharp increases in commercial rates affecting small businesses and the equine industry, especially the reclassification of equine activity as leisure for rating purposes. The Tánaiste said heads of a commercial rates Bill are due in April and undertook to have the relevant Minister contact Deputies directly on the equine classification issue.
The programme for Government features a commitment "to encourage efficient local authorities to adopt commercial rates policies to help sustain existing business and encourage new start-ups". It will not come as a surprise to the Tánaiste to learn that many small and medium enterprises are facing rate increases of 20%, 30%, 40% and more. This is on the back of eight tough years during which they tried to keep the wolf from the door and keep their businesses open. Every Deputy and Senator is inundated with complaints from businesses concerning the application of commercial rates and increases in rates. We have information to show that one family business in Wexford with a turnover of €80,000 received a rates bill of €20,000. These figures speak for themselves and are completely unacceptable.
The equine industry is an important industry in most rural counties, including counties Kildare, Tipperary and Limerick, and employs thousands of people in rural areas. As with many other industries over the years, the sector has been reclassified as a leisure industry. This decision will bring the equine industry to its knees. Will the Tánaiste confirm that the Government will immediately review the relevant legislation and prevent further rates increases to try to retain vital jobs in rural areas?
Comment on this
On the same issue, I attended a meeting in Kildare last night at which representatives of the equine industry made an extremely strong case. Given that the industry comes under the auspices of the Department of Agriculture, Food and the Marine, those involved in it cannot understand the reason it has been reclassified as a leisure industry. This decision has resulted in threefold and ninefold increases in some commercial rates bills. There was no prior notification of this decision. For example, county councillors in attendance last night indicated they had not been informed that this reclassification of equine businesses was about to take place. I ask the Tánaiste to ensure the classification of equine businesses reverts to agricultural and agricultural rates are applied.
Comment on this
The Minister indicated earlier this week that he intended to introduce heads of Bill in this area in April. As such, new legislation may be forthcoming by the end of the year. Will the Tánaiste confirm that the rates bills which have landed on businesses' desks in recent weeks and will continue to be sent in the coming months will not be enforceable once the new legislation to amend the archaic mechanism used for calculating rates has been introduced? Notwithstanding the Government's commitment to address the regional imbalance, this development merely serves as a means of wiping out many businesses.
Comment on this
The equine industry is worth €2 billion and employs 28,000 people directly and 58,000 people indirectly. Deputies Cahill, McConalogue and I discovered at a meeting last night that people genuinely believe they will be put out of business, which is appalling. We need a guarantee that the decision to reclassify the equine industry as a leisure industry will be reversed. The industry has always been classified as agriculture and continues to be classified as agriculture for development levies. There is no reason for this change and we need an assurance that it will be reversed.
Comment on this
The heads of a commercial rates Bill are due in April. I will ask the Minister for Housing, Planning, Community and Local Government, Deputy Simon Coveney, to contact the Deputies specifically on the classification of the equine industry, on which I do not have details. Given the concerns raised by the Deputies, I will ask the Minister to communicate directly with them on the reasons for the change in classification and to provide as much information as possible.