Chamber warns on increasing rates to bridge funding shortfall

Business interests in the Dún Laoghaire-Rathdown area of south County Dublin have warned councillors not to attempt to make up a shortfall in Government funding by increasing rates.

The businesses, members of the Dún Laoghaire Rathdown Chamber of Commerce, claim the area already has the State's second-highest level of commercial rates, and they warn many businesses cannot afford to pay any significant increase. The chamber said 40 per cent of total council expenditure was now funded by commercial rates levied "on a relatively small number of businesses".

According to Mr Michael Johnson, chamber president, there is now "serious concern" at what is described as "the excessive cost burden borne by business". Mr Johnson said an increase of two per cent had been put forward by the county manager, Mr Derek Brady, which would be welcomed by the business community.

He warned councillors that "businesses cannot accept further increases in their commercial rates bill. A further hike in rates could have serious implications for businesses in the county already struggling with rising costs such as insurance and wages as well as inadequate infrastructure in key areas of employment such as Sandyford Industrial Estate. We are worried that Dún Laoghaire-Rathdown County Council, which find themselves with a deficit as a result of a lack of funding from the central Exchequer, will be tempted to significantly increase their take from commercial rates."