Galway Independent Column - 1st December 2010

A Galway City councillor was quoted in the local media recently as saying that a plea by city businesses for a 10% rates reduction ‘would carry a lot more weight’ if the Chamber of Commerce encouraged members to pay up the outstanding rates bill of between €18 million and €22 million.

Galway Chamber has never encouraged any member to default on commercial rates payment even when such measures were proposed as a reaction to rates increases in the past. The payment of Commercial Rates is a statutory obligation on business regardless of ability to pay or the fact that it is an extra tax on business.

It is a fact that there are businesses in Galway that cannot pay rates…they have been encouraged to engage with City Hall to put payment plans in place. Non-collection of Commercial Rates to the value of €18 million from ‘trading businesses’ must ask some questions of City Hall.

Traditionally Commercial Rates plug the gap in the local authority coffers, they balance the books between the national exchequer funding, other income streams and what’s left. Over the last two years Businesses (Rate Payers) have implemented Cost Saving measures that have included
 Pay Freezes
 Wage Reductions
 Staff Reductions
 Operational measures aimed at improving efficiency
 Product Price Reductions
 Customer Service improvements
 Line by line reductions in spending

All of the above have been put in place in order to remain in business and survive these difficult economic times. It would be reassuring if City Councillors could provide details of similar measures that have been introduced by the City Council and identify clearly to the people of Galway the scale of Budget reductions that have been achieved so that the burden of Commercial Rates can be eased and jobs can be made secure?

Along with our lobbying partner organisations IBEC West, the Irish Hotels Federation West, Vintners Federation of Ireland, Galway, Galway Chamber will hold a public meeting on Commercial Rates this evening Wednesday December 1 at 6 pm. All business people are invited to attend. All City and County Councillors have also been invited to attend.

We recently welcomed the publication of the report of the Local Government Efficiency Review Group, and its recommendations, many of which if implemented, could deliver much needed savings to local authorities.

The Review group said that reforms outlined by it would result in savings of in the region of €511 million. Business has been the funder of ‘last resort’ for many local authorities. Therefore cost savings achieved must be passed back to businesses in the form of reduced rates and other charges.

The Local Government Efficiency Review Group’s recommendations include the areas of Administration (7 recommendations); Staffing (8 recommendations); Housing (7 recommendations); Roads (3 recommendations); Water (9 recommendations); Planning (4 recommendations); Waste (3 recommendations); Motor Tax (6 recommendations); Local Government and the Wider Public Service (4 recommendations); Audit/Value for Money (13 recommendations); Financial Reporting/Management (9 recommendations); Cost Recovery and Revenue Issues (8 recommendations); Procurement (10 recommendations); Information and Communication Technology (5 recommendations); Shared Services (4 recommendations); Local Government and the Wider Public Service (5 recommendations); Other Cross-Cutting Recommendations (4 recommendations). These recommendations are flagged variously as short, medium or long term and while it would be a major ask to try to implement such a vast range of recommendations it would be incumbent of the Minister to seriously attempt the implementation of the majority.


The Local Government Efficiency Review Group was established in 2009 to review the cost base, expenditure of and numbers employed in local authorities, the members of the group were: Pat McLoughlin, Chief Executive, Irish Payment Services Organisation and former Deputy Chief Executive of the HSE (Chairperson); Donal McNally, Second Secretary General, Department of Finance; John O’Hagan, Professor of Economics, Trinity College; John Quinlivan, former County Manager; Ian Talbot, Chief Executive, Chambers Ireland; and Geraldine Tallon, Secretary General, Department of the Environment, Heritage and Local Government.

All business people are welcome to the Public Meeting on Commercial Rates this evening in Hotel Meyrick, Eyre Square at 6 p.m.