Plans to link commercial rates to energy rating "will hit businesses hard" - Nolan
Independent TD for Laois-Offaly Carol Nolan has said that some local businesses will be severely impacted by Government proposals to link the commercial rates charges they must pay to their property's energy rating.
Deputy Nolan was speaking after she questioned the Minister for Housing, Local Government and Heritage, Darragh O’Brien, on the matter.
The Minister also specified in his reply to Deputy Nolan that the basis for this approach can be found in Action 46 of the All Government Climate Action Plan 2019 to Tackle Climate Breakdown which examined the feasibility for commercial rates to be linked to BER ratings.
“The Minister has made it clear to me that it is Government’s intention to commence those sections of The Local Government Rates and Other Matters Act 2019, that will enable local authorities to introduce rates directly linked to a premises energy rating in 2022,” Deputy Nolan said.
To those businesses that can upgrade their BER rating, some alleviation of rates may apply, but for those who will struggle to afford costly renovation or upgrading works, no such alleviation of rates will be available.
"As I understand it from the Minister, there were plans to commence the relevant sections of the legislation and introduce the regulations this year, but preparations to do so were delayed" pointed out Deputy Nolan, who added that many local businesses will "simply despair at the thought of being denied the opportunity to have a reduction in their commercial rate charges applied because of circumstances outside their control, such as an inability to access renovation funding."
The local Independent TD said the specific nature of any such schemes at local level will be a matter for the local authority concerned, but she said this would have to be seen in the context of local authorities, such as those in Laois-Offaly, already facing "significant cuts" to their incomes from central government for road repair and maintenance.
How many local authorities will be able to resist the opportunity to increase their commercial rates income given the opportunity to do so? she asked "that is the question that will cause deep concern among many local businesses just as they were hoping for a recovery of sorts in 2022."