Two-Tier Commercial Rates System for Business Must be Investigated – Hayes

South Tipperary T.D. Tom Hayes has called on the Department of Environment, Community and Local Government to work with Local Authorities to investigate a two-tier commercial rates system.

“At present, large employers or multinationals who are located here in Ireland move here for a number of reasons, including our low corporation tax rate. They benefit hugely from the tax system and the commercial rates that are payable on their large factories are therefore a very manageable cost involved in being located here,” Tom Hayes said.

“Meanwhile, small business in this country like small shops, pubs, and other commercial businesses, are crippled by the commercial rates that they are paying – as these are at the same rates as the larger corporations. Commercial rates in this country are in fact putting smaller companies out of business, and we are losing the jobs we cannot afford to lose across the country as a result.”

“I am advocating that a two-tier commercial rates system be seriously investigated, and even introduced as a pilot project. While the income to the council would fall from the smaller businesses, the larger portion of the income from the larger corporations would remain the same, or could even be raised a little. This would mean that Local Authorities would retain the necessary revenues to fund local government, while ensuring that small business in this country would not be hampered and forced to close.”

“Larger companies and multinationals get a very good deal in this country and we can see that because so many of them stay in this country. They are not unhappy with the commercial rates and are not being impeded by them in the same way that small business is. We must tailor our local government and our enterprise policies generally to retain as many jobs as possible, and we are bleeding jobs from small business.

“I will be strongly pushing for this policy to be considered and I would recommend that small business make it known that this would have serious benefits for them,” Tom Hayes T.D. said.

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