Retailers call for 20% cut in commercial rates
Retail Ireland, the IBEC group which represents the retail sector, has called on all local authorities to cut commercial rates when voting on their 2010 budgets for the coming year. Retail Ireland has written to the chairperson of every local authority as well as all city and county managers to ask for a reduction of 20 per cent. In addition, the group has written to Taoiseach Brian Cowen, Fine Gael leader Enda Kenny and to Eamon Gilmore, leader of the Labour Party, to request that their councillors support such a move. Retail Ireland director Torlach Denihan said: "Over the last year, 30,000 retail jobs have been lost and the sector is struggling to avoid further redundancies over the coming months. Local authorities must play their part in the retail sector's efforts to regain lost competitiveness and safeguard employment. As can be seen from the Consumer Price Index, retailers have cut prices aggressively over the last year." He added that, over the last decade, local authorities have been able to fund many projects through development levies and commercial rates paid by the retail sector. They now need to act responsibly and help the sector retain employment in view of the threat posed by the collapse in sales, and aggravated by cross-border shopping, Mr Denihan said. He added: "Since 2000, the annual rate on valuation has increased by a cumulative 57 per cent nationally. Last year, some local authorities took the incredible decision to increase the annual rate on valuation (Clare 3.8 per cent, South Dublin 3.63 per cent, Fingal 3.5 per cent, Wexford 3.5 per cent and Dublin City 3.35 per cent) despite the fact that the retail sector was in crisis. We are particularly disturbed that a revaluation exercise in South Dublin and Fingal is further aggravating the problem, resulting in some retailers facing increases of up to 50 per cent." Retail Ireland is the representative body for the entire retail sector in Ireland and is affiliated to IBEC. Its membership includes department stores, DIY, electrical retailers, fashion and footwear retailers, major supermarket groups, symbol groups and specialist retailers.