Crisis for local businesses as rates increase proposals loom

Local businesses struggling to keep their doors open and staff employed were dealt a devastating blow as the details of the proposals for the Mayo County Council and Castlebar Town Council annual budgets 2011 were published this week, according to Castlebar Chamber of Commerce.

“The proposals are a bitter pill to swallow for local businesses who in 2010 not only endured devastating losses as a direct result of the lack of local spending and increased business costs, but who also suffered closures and losses during the most critical month of trading as a result of the recent water shortage fiasco,” Castlebar Chamber said in a statement.

“In response, Castlebar Chamber has tackled the proposals in both budgets and called on councillors to fully consider the budget submissions that it has furnished to all councillors, the town manager, and the county manager on behalf of its members. Whilst Castlebar Chamber acknowledges that hard decisions will need to be taken, it is imperative that local authorities recognise the dangerous state of small businesses in Castlebar.

“Amongst the proposals in the Mayo County Council annual budget is the draconian 14.6 per cent increase in commercial water and waste water rates. Not only is this increase seen as alarming in light of the inadequacies of local water services systems as highlighted in recent weeks, this proposal is difficult to reconcile with most local governments are either maintaining 2010 rates or reducing rates, as Cork County Council is doing so by three per cent. Castlebar Chamber is calling for a reduction in commercial water and waste water charges of 3.5 per cent.

“A further proposal in the Mayo County Council annual budget is the maintenance of the current rate of commercial and industry property rates. Whilst Castlebar Chamber welcomes the proposal not to increase commercial and industry property rates, it is disappointing that steps similar to those taken by local authorities throughout the country, with a reduction in these rates ranging from one per cent to five per cent, have not been proposed. Castlebar Chamber is calling for a reduction in commercial property rates of 2.5 per cent.

“Castlebar Chamber is further calling on the allocation of specific monies for the promotion of local business and enterprise development.

“Castlebar Chamber is committed to engaging in a meaningful manner with both Mayo County Council and Castlebar Town Council on behalf of its members to explore alternative, workable proposals, and to address widening the income base for local authorities to prevent an unfair burden on the business community. Castlebar Chamber will be updating members on the outcome of any discussions with local authorities”, the statement concluded.

 

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