Fine Gael calls for freezing of all business rates in councils until 2012

THE STATE could no longer afford its local government structure, Fine Gael environment spokesman Phil Hogantold the Dáil. He said it was time to row back on the number of agencies created under a number of Government departments.

“The local government system developed in the Celtic Tiger era into an elaborate structure which the country can no longer afford,’’ said Mr Hogan. Citizens should continue to expect the highest form of customer service from the local authority, he added.

Mr Hogan was introducing his party’s Private Member’s motion calling for the freezing of all business rates in councils until 2012.

“Ireland needs a competitive indigenous business base if we are to return this country to a secure financial footing,’’ he said.

“To restore competitiveness we need lower business costs to help them through the recession.’’ Mr Hogan said that Irish businesses already paid some of the highest energy costs in Europe and were burdened with needless red tape and bureaucratic road blocks.

Small and medium businesses, he said, were vital to the health of both the national and local economy. Mr Hogan said that small businesses employed over 800,000 people in every town and village in the country before the worst of the current crisis hit.

“They have contributed billions in tax to the national finances every year,’’ he added.

“The current crisis has hit them hard, with scores shutting down and many people put on social welfare.’’ Fine Gael, he said, wanted to see a special customer service unit which would be uniform across all local authorities.

The party wanted to see savings and efficiencies rather than new taxes and charges, he added.

“We need to restore trust, services, accountability and responsibility back to local level.”

Minister of State for Enterprise, Trade and Employment Billy Kellehersaid that Tánaiste Mary Coughlan had met twice this year with representatives of the city and county managers' association to impress upon them the importance of providing a supportive environment for business.

She had also stressed the importance of ensuring that all local levies and charges were applied in a transparent, fair and proportionate manner, he added.

Mr Kelleher said that Minister for the Environment John Gormley had also written to the local authorities earlier this year outlining a number of measures they should consider to further support economic activity.

Minister of State for the Environment Michael Finneransaid there had been no overall increase for water, refuse or other services over the past year. "There has actually been a marginal decline,'' he added.

Labour spokesman Willie Penrosesaid that while the Fine Gael proposal was laudable, to freeze local authoritiy rates was too wide and could result in placing an extra burden on workers and social welfare recipients.