Galway Independent Column - 15th September 2010

Each year Galway Chamber, in consultation with our members, makes a Pre-Budget Submission to the Minister for Finance and an Taoiseach. This submission expresses the views and opinions of our members, real business people operating in the real world.

These real opinions from real people focus on issues such as Public Sector Costs, Infrastructure, Commercial Rates, Jobs, Education, Taxation, Stimuli for SME’s and Maintaining Ireland as an Attractive Area for Investment. This is a core group of headings for the Submission but where there is a particular issue in a particular year, it will be highlighted. Clearly this year Jobs is a priority and will be addressed.

Galway Chamber will call on Government to put measures in place to allow Ireland Inc. to compete, innovate and grow while sustaining employment, supporting Irish companies and continuing to attract foreign direct investment. While our message is national, it’s main focus is local and our submission will reflect the particular issues of importance to Galway businesses, our members.

We have long been lobbyists on Commercial Rates and this ties in with our views on public sector finance in general. In our submission we will urge a freeze on Government controlled cost increases, a reduction in the public service pay bill, reduction in non-pay costs in the public service like overtime and other work related costs, the elimination of duplication of support services/agencies and the rationalisation of ‘back office’ services across the public sector. This last item is something we have been vocal on for some time and the message seems to be hitting home. Only last week the Minister for Health suggested that consultants could possibly share office services…

Government needs to reform its system of funding for Local Government to help compensate for the decline in construction activity and its effect on revenues derived by local authorities from development contributions. Specific measures to redress this inequity include: a 3-year phasing out of Commercial Rates by introducing a more broadly based sectorally inclusive system of funding for Local Government. During the phasing out period the level of Rates increases must be reduced. There must be value for taxes paid at a local level, for example, a direct tax credit against actual rates paid. Inequity in location must be addressed in terms of Commercial Rates where centres of critical mass are being penalized i.e. Rateable Valuations. The Local Authority paybill must be reduced through a ‘back office’ rationalisation plan for activities such as HR, IT and Finance Administration

Galway needs to consolidate its position as our countrys third city by encouraging iconic, relevant and important developments. Our city is in serious danger of losing out to Cork, Limerick and Dublin in relation to vital infrastructure and investment projects.

We continue to urge both national and local government to support the work of the business community and to ensure that where possible job creating projects be secured for Galway in the short term to allow Galway to maintains its attractiveness as a location to live, work and do business in the longer term.,

That’s why this week’s comments by Minister for Finance Brian Lenihan at his party’s ‘think-in’ here in Galway were so alarming. Speaking to reporters on his arrival in Galway the Minister who controls our purse strings said that the figure of €3 billion in ‘adjustments’ already promised in the upcoming December budget was ‘a minimum’. This word ‘minimum’ is a relatively small word with big implications. Bottom line is that any larger tax increases coupled with service cuts in the next Budget will have a profound impact on business here. There are currently 80 vacant premises in Galway city centre. That’s too many.