Ibec seeks 'equitable' charges for businesses

Start-up businesses are paying more than €200,000 per annum in rates to some local authorities, more than double the amount being charged in other areas, the Irish Business and Employers Confederation (Ibec) has claimed.

Minister for the Environment and Local Government Dick Roche will this morning launch an analysis of local government financing carried out by Indecon consultants, which is expected to warn that €2 billion in extra local revenue must be raised over the next decade.

In its study published in advance of the Indecon document, Ibec called on the Government to bring about radical reform of the local government system to make charges "more equitable and make local government officials accountable"

Ibec's Director of Enterprise Brendan Butler said: "New enterprises are the lifeblood of our economy but those establishing a 15 person industrial company in Limerick or Dublin City can face local authority charges in excess of €208,000 - in the first year alone.

"The same industry setting up in Cavan can face a bill of €83,000. While these costs are in themselves excessive, it beggars belief as to what better services an industry in Limerick City receives over a similar facility in Cavan," said Mr Butler.

The Indecon report, he said, offered "a unique opportunity" for the Government "to finally grasp the nettle and address the serious shortcomings of local government" in the State, said the Ibec director.

Ibec said services must be funded by all users, but it is understood Mr Roche will not increase charges to householder, when he considers the findings of today's report.

"Continuing to seek excessive revenue from business cannot be sustained without damage to our economy.

"We must ensure local authorities operate to the highest levels of efficiency. The base must be broadened to include all who benefit. Failure to act risks having nobody left to foot the bill", concluded Mr Butler.