I raise the issue of commercial rates which will come before local authorities in the next two months. An analysis was undertaken during the summer months to identify the amount of commercial rates being paid in local authorities and the lack of discretion allowed to councillors. For example, Cork County Council collected over €118 million in commercial rates which is local tax, of which some €27 million was collected from the top ten companies. In one of the local authorities in Dublin over €314 million was collected, of which €67 million was collected from the top ten companies. The average amount paid per ratepayer in Cork is €11,647 from a total of 10,200 ratepayers. In Cork city alone 5,500 ratepayers paid an average of €10,899.

One of the points is that discretion must be given to councillors, in particular in areas where there is a need for redevelopment of urban areas in which an incentive is required. Councillors should have discretion in order that rates can be adjusted for specific areas and, at the same time, that adjustment can be absorbed in the overall rate for the rest of the local authority area in order that it would be cost neutral. A number of councillors have raised the issue with me that they do not have any discretion in this regard, yet they are supposed to be in charge of their area. If necessary, we need to bring forward amending legislation if this cannot be done under the existing structures. It is a very important issue, particularly in encouraging new businesses to start in an area from which businesses have moved out or in encouraging development in particular areas. It is a discretion that should be given to individual local authorities.