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Seanad
‹ Order of Business

SME commercial rates

Summary

Senator Butler asks for action on commercial rates, saying businesses that survived the recession should not be pursued through the courts like criminals.

I raise the issue of commercial business rates for small and medium-sized enterprises, SMEs. Recently, I was asked to attend the local courthouse to see three businesses being dragged before the court like common criminals because they were in arrears in paying their local authority rates.

This is happening all over the country, not just in my area but in everybody's. As the economy improves and grows, more local authorities are putting the boot down. Businesses have survived during the past five or six years through a disastrous economic crash and should be put on a pedestal for keeping their doors open, but instead they are being crucified. Politicians have done nothing to address the issue. The rates Bill dates back to the 1800s and its only provision is that people must pay. We all put on the green jersey two years ago when social and GAA clubs needed help on the rates issue. We introduced legislation, which was fantastic and right. I appeal for politicians in this and the other House to do something about our draconian rates legislation. Business owners who have employed people and paid their taxes, including VAT, are being dragged before judges like paupers. We need the legislation to be changed and must debate it in the House. We need to see if companies in the past five years have broken even or lost money. If they have broken even or lost money, we should consider helping them and, in some cases, wiping the debt. In some cases, the debt has been wiped and favouritism has come into play in certain local authorities, whereas in others they have gone the whole hog and collected the money. We should help SMEs by introducing legislation which should provide for calculating rates based on profits rather than the square footage of a premises. A premises in a small rural town where five people might pass the door in one day might pay the same amount in rates as a premises in the Blanchardstown Centre where thousands of people pass through the doors. It is ludicrous. I call on the Minister to come to the House to debate the issue and help those who have kept their doors open and helped rural communities but who are being slaughtered and dragged down. What I see happening is disgraceful.

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