Tuesday, 25th November 2008

Hoteliers Condemn Increase in Dublin Rates
Government Must Veto Rates Increases

The decision by Dublin City Council (DCC) to increase commercial rates by 3.3 percent has been condemned by the hoteliers as outrageous and indefensible in the current economic climate. The Irish Hotels Federation (IHF) states that hoteliers in Dublin and across the country are facing into a stark reality over the next 18 months and that the Government must now intervene as a matter of urgency to reverse the move by DCC.

The Federation calls on the Government to consider the immediate introduction of emergency measures placing an embargo on all increases in rates and local authority charges. Slamming the current system of local authority funding as antiquated, anti-business and anti-competitive, the IHF states that local authorities and state bodies should not be allowed to act with total disregard for the business realities now facing the Irish economy.

Mr Matthew Ryan, President, IHF, states, “The move by Dublin City Council is extremely short sighted and jeopardises the long term well being of the economy. The move sets a dangerous precedent with wider implications throughout the country as other local authorities will now attempt to follow suit and increase rates. The Government can not allow local authorities to their own devices to the determent of the wider economy. It needs to get a handle on all state and local government bodies and veto any rates increases as a matter of priority to safeguard national competitiveness.”

            “We now have an unacceptable situation in which, at the stroke of a pen and without consultation, Dublin City Council can deal businesses a severe body blow at a time when they are at their most vulnerable. This increase comes on top of the 2008 increase of 3.9% plus a further 5% charge for premises in the Business Improvements Districts (BIDs). If this increase is allowed, it will mean that businesses in the Dublin City area will have to pay between 7.2% and 12.2% extra in local authority related taxes in the two most difficult trading years of 2008 and 2009.  The Government allowing such unfettered increases is a recipe for economic disaster. What Ireland needs are measures that bolster business and business confidence in order that they can drive the economy through current difficulties. The last thing we need is government agencies and state monopolies, including local authorities, being allowed to increase their taxes and charges without any account been taken of the ability of businesses to pay them or the impact that they are having on the survival chances of enterprises.”

The Federation has long been an advocate of reform of local authority funding and maintains that this needs to be addressed by the Government in the medium term. It states that the hotel sector continues to disproportionately subsidise local authorities and their services.

Mr Ryan states, “Businesses continue to be penalised by an antiquated taxation system of commercial rates that sees local authorities extract taxes relative to the size of premises without any recognition been taken of the viability or profitability of the business operating in the premises. Governments all over the world are urgently introducing measures to assist businesses cope with the present world wide economic recession. The Irish government can not stand bye and allow another organ of the state system – local authorities – continue as if no economic crisis exists.”

ENDS

FOR INFORMATION:

Siobhan Molloy/Eoin Quinn                Tel: 01 676 0168
Weber Shandwick                              Mobile: 086 8175 066 / 087 2332 191