Kells Council plans to offer reduced rates for start-ups

Environment Minister John Gormley has been urged by Cllr Sean Drew to give a prompt response to proposals for a new Commercial Rates Reduction Scheme. He was referring to a scheme that has been promoted by the Association of Municipal Authorities of Ireland, and which has been sent to Minister Gormley for his approval. In supporting the scheme, Cllr Drew urged the minister to give a prompt and positive decision to the proposal and said that, if approved, he would request Kells Town Council to implement the scheme for new start-up businesses in Kells from January 2011. The purpose of the scheme is to allow new start-up businesses a commercial rates reduction over the first three years of trading to assist them kick-start their business and help them establish themselves in their own right. “The scheme outlines the criteria for qualification to applicants and these include the requirement that the business must be new and started up in premises that have not been used for business purposes in the previous two years,” said Cllr Drew. “The new business or retail outlet cannot duplicate a similar business in the town or cause potential displacement. The new business is required to be a new venture and cannot be an addition to an existing business. In the case of a new business being set up in a rented premises, the landlord must give an undertaking to reduce rent by the same commercial rate reduction over the first three years of the property lease agreement,” he explained. The actual commercial rates reduction proposed is based on the first three years of trading and provides a 75 per cent reduction in year one, 50 per cent in year two and finally 25 per cent in year three. “I appreciate that my council colleague, Cllr Sarah Reilly, recently outlined suggestions for a rates incentive. However, if this AMAI-promoted scheme is approved by the minister, I would urge the members of Kells Town Council to implement this scheme, particually in view of the fact that the non-displacement clause in the AMAI scheme clearly addresses any potential anti-competitive issues that may arise. This is a very practical initiative and, if approved and implemented, would provide financial support to entrepeneurs seeking to start up business in Kells,” he said.