Limerick Chamber has expressed its outright opposition to a proposed 4.5 per cent increase in commercial rates for 2016 by Limerick City and County council.
Chamber chief executive Dr. James Ring said the local authority needed to balance its budget and stop looking to businesses to plug the gap.
“Expenditure needs to be reduced and a broader income base needs to be developed in City Hall. A rates increase merely seeks to increase income from a group that is already stretched to the limit.
“The proposal to increase rates by 4.5 per cent will extract an addition €2.25 million from businesses who already give the local authority almost €60 million a year, which is 35 per cent of the council’s overall income” he said.
“It is counter-intuitive to promote Limerick as ‘open for businesses with a ‘can-do’ attitude yet increase commercial rates to bleed more money from businesses. Ultimately we must enable businesses, both large and small, to create employment and continue to support the economic vibrancy of the region.
“Limerick Chamber calls on all councillors to think of their constituents and the businesses that provide and generate employment for them when they vote on this proposal on Friday, jobs will inevitably be lost with a rates increase.
“The proposed rates increase sends a message that the local authority see businesses as a source of additional income.
“Limerick Chamber believes commercial rates should be index linked and at the moment, in a period of zero inflation, a 4.5 per cent rates increase cannot be justified. Revisit this issue in 12 months and allow businesses to get back on their feet and get people back into employment”, Dr Ring concluded.
