Published: Saturday, 5th December, 2009 6:22pm

Council urged to cut rates in Tullamore to protect jobs

Tullamore & District Chamber of Commerce has called on Tullamore Town Council to implement a 5% reduction in rates for next year.

The Chamber said that anything less than this will be a serious threat to competitiveness and jobs in the town. There was no increase implemented during 2009.

President of Tullamore & District Chamber Tony McCormack has appealed to the local authority to implement a 5% reduction in rates as a measure to support local competitiveness. He pointed out that historically, inadequate exchequer funding has forced local authorities to source necessary funds from the business community through commercial rates, water charges, development contributions and other charges.

"Local businesses are already facing significant increases in wage and energy costs and any additional increase in local authority charges will further serve to undermine their competitiveness," said Mr McCormack.

"Rates and service charges are not linked to ability to pay and have a disproportionate impact on smaller businesses and in the current economic climate, rates at unsustainable levels could be the final blow for many businesses. A fair rates base would also increase our attractiveness as a location in which to locate new business, driving our local economy and creating employment."

The President pointed out that businesses located in Tullamore have seen rates increase by 64.84 % in the last ten years and this statistic includes the freezing of rates last year by the Town Council, a move that was warmly welcomed by Tullamore & District Chamber of Commerce.

"The coming year will be a difficult one for all businesses and they should be supported as much as possible and a fair rates base will also ensure that Tullamore is seen as a progressive and prosperous town. This is also vital in the context of Tullamore's full participation in the Midlands Gateway Structure and to ensure regional competitiveness is fostered also," he added.

The President added that local authority funding must be more balanced, so that businesses, households and central Government each pay their fair share applying the 'polluter/user pays' principle, as recommended in the Indecon Report on local government financing.