We have written many times about Galway Airport and its importance to the economic well-being of this region. We consider it to be a vital piece of infrastructure for our region and that its future and the future of investment in this region are inextricably linked.
Galway Airport is a critical piece of transport infrastructure supporting both the indigenous and international business sectors by facilitating both outbound and inbound access to and from international markets. The industrial composition of the Galway economy is unique among Irish cities in terms of the concentration of high technology industries and its extremely heavy dependence on internationally traded sectors and markets and that because of the airport’s extensive access to international ‘hub’ airports the airport continues to be a key selling point in maintaining and attracting investment into the West region.
Carmel Brennan, President of the Galway Chamber said this week that: “Galway Airport is a business airport and its existence and survival is critical for the future of the region as it makes an important contribution to supporting and creating jobs in Galway”.
That’s why we were concerned at the announcement by Minister for Transport, Noel Dempsey TD, last week the discontinuation of the Public Service Obligation (PSO) air services between Dublin and Galway post the current PSO contract would end in July of this year.
This was coupled with the Department of Transport’s report on the “Value for Money Review of Exchequer Expenditure on Regional Airports Expenditure Programme” which effectively said that Galway Airport would close should its recommendation to cease the annual operation subvention be implemented.
As a result of both of these issues Galway Chamber, on behalf of our members, called a meeting with the Oireachtas members from Galway West and East and the Mayors of Galway City and County. The meeting was attended by Mayors Michael Crowe and Jimmy McClearn, Minister Eamon O’Cuiv, Deputies Frank Fahey, Noel Grealish, PadraicMcCormack, Cllr. Paul Connaughton and Senator Fidelma Healy-Eames.
The meeting discussed the Report, the PSO and the Operation Funding for Galway Airport. Each of the attendees gave their opinion on the situation and the outcome was clear and unambiguous support for the continuation of the Operational Funding for Galway Airport. The politicians present agreed to work together, cross party to ensure the continuation of this vital piece of western infrastructure.
We further urge all candidates in the upcoming election to include the support for Galway Airport as part of their election manifesto on behalf of the business community in Galway and the region.
As a result of the meeting the matter is now being raised at Government level on a cross party basis and we look forward to an announcement that Galway Airports Operational Funding will continue in order to ensure the future of this essential piece of infrastructure.
It is also well to remember that Galway Airport in itself provides direct employment associated with the Airport for 175 full time equivalent personnel, contributing in excess of €2 million in PAYE and PRSI to the Exchequer. Galway Airport has received written support from employers representing 15,000 employees as well as messages of support from the development agencies, IDA, EI and Udaras and the third level sector NUIG and GMIt. At a time like this when political and economic certainties are few and far between it is heartening to see this sort of cross party and inter agency support for Galway’s airport and for business in Galway.
Thursday, March 10, 2011
Galway Independent Column - 12 January 2011
January is a time of resolution. It’s a time when we think about the year ahead, when we plan and regroup. It’s a time for focus. This resolution applies to both our personal life and our business life. It’s a time for getting fit in body, mind and business.
RTE’s Operation Transformation is back on our screens. We would like to wish local leader Ronan Scully, Goal’s western manager, every success on the programme and urge as many people as possible to follow Ronan on the RTE/OT website. The success of this programme, now in its third series has a lot to do with being able to choose a leader and be part of that leaders road to success.
It’s a good time of the year for joining…a gym, a club, a nightclass or a business organisation. Memberships of organisations are important in many ways. It’s always good to know that there is an organisation out there to support you in your particular area of need. Mostly its good to know that there are other like minded people out there who are looking for the same thing, who have similar needs, wants and ambitions. It’s good to know that a solitary voice can become one of many and therefore be stronger and more effective.
Membership organisations are even more important in difficult times. Being a member lessens the feeling of isolation that can result from stress and problems. Being able to talk to others in similar situations helps. As a membership organisation Galway Chambers networking events are popular for these very reasons. We begin this years series of Business After Hours networking events on Thursday January 27 when Iarnrod Eireann, www.irishrail.ie will be our hosts.
We also lobby on members behalf, we have a full time, professional executive team to help members, we host the Europe Enterprise Network to promote your business in Europe and we represent members on various boards ranging from business to education. Galway Chamber engages with the following organizations as part of its work in support of the continued economic development of the City and the West Region:Galway City Council, Galway County Council, IDA Ireland, Enterprise Ireland, Failite Ireland, Udaras na Gaeltachta, the County and City Enterprise Board, FAS, Galway City VEC, The Revenue Commissioners, NUI, Galway, GMIT, the GCBA, The Western Development Commission, the West Regional Authority, Westbic, ITAG, The Irish Hotels Federation, IBEC, The American Chamber of Commerce, Gaillimh le Gaeilge, The Galway Harbour Board and the Gardai.
We believe that strength in membership increases our lobbying power on behalf of our members. For more information on becoming a member of Galway Chamber please contact us on 091 563536 or log onto www.galwaychamber.com
RTE’s Operation Transformation is back on our screens. We would like to wish local leader Ronan Scully, Goal’s western manager, every success on the programme and urge as many people as possible to follow Ronan on the RTE/OT website. The success of this programme, now in its third series has a lot to do with being able to choose a leader and be part of that leaders road to success.
It’s a good time of the year for joining…a gym, a club, a nightclass or a business organisation. Memberships of organisations are important in many ways. It’s always good to know that there is an organisation out there to support you in your particular area of need. Mostly its good to know that there are other like minded people out there who are looking for the same thing, who have similar needs, wants and ambitions. It’s good to know that a solitary voice can become one of many and therefore be stronger and more effective.
Membership organisations are even more important in difficult times. Being a member lessens the feeling of isolation that can result from stress and problems. Being able to talk to others in similar situations helps. As a membership organisation Galway Chambers networking events are popular for these very reasons. We begin this years series of Business After Hours networking events on Thursday January 27 when Iarnrod Eireann, www.irishrail.ie will be our hosts.
We also lobby on members behalf, we have a full time, professional executive team to help members, we host the Europe Enterprise Network to promote your business in Europe and we represent members on various boards ranging from business to education. Galway Chamber engages with the following organizations as part of its work in support of the continued economic development of the City and the West Region:Galway City Council, Galway County Council, IDA Ireland, Enterprise Ireland, Failite Ireland, Udaras na Gaeltachta, the County and City Enterprise Board, FAS, Galway City VEC, The Revenue Commissioners, NUI, Galway, GMIT, the GCBA, The Western Development Commission, the West Regional Authority, Westbic, ITAG, The Irish Hotels Federation, IBEC, The American Chamber of Commerce, Gaillimh le Gaeilge, The Galway Harbour Board and the Gardai.
We believe that strength in membership increases our lobbying power on behalf of our members. For more information on becoming a member of Galway Chamber please contact us on 091 563536 or log onto www.galwaychamber.com
Galway Independent Column - 5 January 2011
The news that 85 jobs are lost in the hospitality sector in one go here in Galway this New Year does not bode well for an industry that has tried everything in its power to stave off this type of situation.
Job losses at any time of year are catastrophic for those involved but particularly in these difficult early January days when festive bills have to be paid. It’s all the more extraordinary then to read of a hotelier in Cork who cites last year as being his best ever and is quoted as saying that he doesn’t believe that the hotel sector is as bad as the media is making it out to be.
I’m not sure that the hospitality industry here in Galway ie hotels, restaurants, pubs, nightclubs would agree with him. This industry in particular depends very heavily on consumer spending and as such has been seriously compromised over the last couple of years. This combined with weather and water crises in the last trading period (Christmas being the peak trading period for the majority of the sector) has minimised any ‘cushion’ for the bleak early months of 2011.
Galway Chamber has consistently called for supports for SMEs and has urged support particularly for our smaller indigenous businesses. These are the backbone of our economy and are what makes us different. It is time that Government realised that this sector is not the ‘poor relation’ of multi national and other sectors, rather it is a crucial bedrock of our economy. More than ever now they need support to grow and prosper and to ensure job retention. We hear all the time about the economic recovery being tied into exports and that’s great, but we cannot forget the SME sector. It should also be remembered that this sector is the foundation of our tourism industry and as the world economy improves tourism will provide us with a serious sector to be serviced.
In the complete absence of reductions (or minimal reductions) in government controlled costs for small businesses ie Commercial Rates being one, these businesses will have to continue to cut the costs that are within their control and make no mistake, this will mean job losses. What we need now is Government action, task forces, incentives, basically Government attention to this situation. Small business needs access to credit…now…not promises or talk. The traditional retail, hospitality SME sector needs priority and above all, action. This may well include specifics like a special Commercial Rates incentive for start ups, straight employment grants, tax incentives or combinations of those and others.
On a different but related matter, it has also been reported that Minister for Housing Michael Finneran said in a recent interview that he ‘questions the need for 88 different housing authorities to support the delivery of housing services’. It appears that senior figures in his department are currently looking at this and will report in the coming weeks. This is as a result of the report of the Local Government Efficiency Review Group which said that certain departments in city and county councils should be merged to make cost savings. Galway Chamber has been urging local City and County Council to investigate the recommendations of this group to make cost savings across back office functions (not necessarily or just housing) which could then be used to alleviate the burden of Commercial Rates on business. One small step for Minister Finneran could be a major leap for local authorities as we know them.
Ath bhliain faoi shean is faoi mhaise do gach ball de Chumann Tráchtála na Gaillimhe
Job losses at any time of year are catastrophic for those involved but particularly in these difficult early January days when festive bills have to be paid. It’s all the more extraordinary then to read of a hotelier in Cork who cites last year as being his best ever and is quoted as saying that he doesn’t believe that the hotel sector is as bad as the media is making it out to be.
I’m not sure that the hospitality industry here in Galway ie hotels, restaurants, pubs, nightclubs would agree with him. This industry in particular depends very heavily on consumer spending and as such has been seriously compromised over the last couple of years. This combined with weather and water crises in the last trading period (Christmas being the peak trading period for the majority of the sector) has minimised any ‘cushion’ for the bleak early months of 2011.
Galway Chamber has consistently called for supports for SMEs and has urged support particularly for our smaller indigenous businesses. These are the backbone of our economy and are what makes us different. It is time that Government realised that this sector is not the ‘poor relation’ of multi national and other sectors, rather it is a crucial bedrock of our economy. More than ever now they need support to grow and prosper and to ensure job retention. We hear all the time about the economic recovery being tied into exports and that’s great, but we cannot forget the SME sector. It should also be remembered that this sector is the foundation of our tourism industry and as the world economy improves tourism will provide us with a serious sector to be serviced.
In the complete absence of reductions (or minimal reductions) in government controlled costs for small businesses ie Commercial Rates being one, these businesses will have to continue to cut the costs that are within their control and make no mistake, this will mean job losses. What we need now is Government action, task forces, incentives, basically Government attention to this situation. Small business needs access to credit…now…not promises or talk. The traditional retail, hospitality SME sector needs priority and above all, action. This may well include specifics like a special Commercial Rates incentive for start ups, straight employment grants, tax incentives or combinations of those and others.
On a different but related matter, it has also been reported that Minister for Housing Michael Finneran said in a recent interview that he ‘questions the need for 88 different housing authorities to support the delivery of housing services’. It appears that senior figures in his department are currently looking at this and will report in the coming weeks. This is as a result of the report of the Local Government Efficiency Review Group which said that certain departments in city and county councils should be merged to make cost savings. Galway Chamber has been urging local City and County Council to investigate the recommendations of this group to make cost savings across back office functions (not necessarily or just housing) which could then be used to alleviate the burden of Commercial Rates on business. One small step for Minister Finneran could be a major leap for local authorities as we know them.
Ath bhliain faoi shean is faoi mhaise do gach ball de Chumann Tráchtála na Gaillimhe
Galway Independent Column - 22 December 2010
It was the culmination of a year in which Supermacs opened six new outlets with a job total of 250 full time and part time staff. This is no mean feat in the current climate and shows that true entrepreneurship will always win through. At the time Pat McDonagh was quoted as saying: ‘We’re very happy to be in a position of growth. The market is challenging and looks that it will be even more challenging next year. We kept our business tight during the good times and it is now paying dividends. We have kept costs and overheads tight and are working smarter and harder.’
In many ways this should be a blueprint for the year ahead for all of us. Supermacs hope to open a further four to five outlets in 2011. This success story is even more admirable considering that the company’s profits were adversely affected for years due to its US investments. It is in the nature of the entrepreneur to keep going, to get on with it and if things go wrong to dust himself off and start again.
Another fitting quote as we head into Christmas and the New Year and cognisant of the difficulties which will continue to face business in 2011 is the following extract from John F. Kennedy’ inaugural address:
‘"All this will not be finished in the first one hundred days.
Nor will it be finished in the first one thousand days,
nor in the life of this administration,
nor even perhaps in our lifetime on this planet.
But let us begin."
And on another positive note the announcement by Minister O’Cuiv that Galway Airport is to receive funding totalling €1.7m for 2010 is a great boost for everybody associated with Galway Airport. In particular the Board and the management team at the Airport are to be congratulated for their enormous efforts in generating support for the Airport.
Led by Chairman, Michael Corless and supported by Joe Walsh, Managing Director and the Board Members, they met with local business, local politicians, national business agencies including IDA and Enterprise Ireland, TDs and Ministers and then took the fight to Europe. The cornerstone of their campaign is that the local business community continually say in response to surveys, in meetings, in letters and emails and publicly on the airwaves that Galway Airport is crucial to the continued economic development of Galway and the Region.
That Galway Airport continues to survive irrespective of the economic conditions is a testament to the brave decision makers in Galway Chamber of Commerce who nearly 40 years ago decided that Galway needed its own Airport. Galway Chamber continues to be the 90% owner of the Airport and continues to be central to the Airports ongoing development. There will be other difficult junctures ahead but for now well done Minister, well done Government for listening to reasoned argument and well done Michael Corless and Joe Walsh for your leadership, this success is well deserved.
The offices of Galway Chamber will be closed from 5.30 pm on Thursday December 23rd and will reopen at 9 am on Tuesday January 4th.
We would like to take this opportunity to wish all our members a Happy and Peaceful Christmas and New Year.
In many ways this should be a blueprint for the year ahead for all of us. Supermacs hope to open a further four to five outlets in 2011. This success story is even more admirable considering that the company’s profits were adversely affected for years due to its US investments. It is in the nature of the entrepreneur to keep going, to get on with it and if things go wrong to dust himself off and start again.
Another fitting quote as we head into Christmas and the New Year and cognisant of the difficulties which will continue to face business in 2011 is the following extract from John F. Kennedy’ inaugural address:
‘"All this will not be finished in the first one hundred days.
Nor will it be finished in the first one thousand days,
nor in the life of this administration,
nor even perhaps in our lifetime on this planet.
But let us begin."
And on another positive note the announcement by Minister O’Cuiv that Galway Airport is to receive funding totalling €1.7m for 2010 is a great boost for everybody associated with Galway Airport. In particular the Board and the management team at the Airport are to be congratulated for their enormous efforts in generating support for the Airport.
Led by Chairman, Michael Corless and supported by Joe Walsh, Managing Director and the Board Members, they met with local business, local politicians, national business agencies including IDA and Enterprise Ireland, TDs and Ministers and then took the fight to Europe. The cornerstone of their campaign is that the local business community continually say in response to surveys, in meetings, in letters and emails and publicly on the airwaves that Galway Airport is crucial to the continued economic development of Galway and the Region.
That Galway Airport continues to survive irrespective of the economic conditions is a testament to the brave decision makers in Galway Chamber of Commerce who nearly 40 years ago decided that Galway needed its own Airport. Galway Chamber continues to be the 90% owner of the Airport and continues to be central to the Airports ongoing development. There will be other difficult junctures ahead but for now well done Minister, well done Government for listening to reasoned argument and well done Michael Corless and Joe Walsh for your leadership, this success is well deserved.
The offices of Galway Chamber will be closed from 5.30 pm on Thursday December 23rd and will reopen at 9 am on Tuesday January 4th.
We would like to take this opportunity to wish all our members a Happy and Peaceful Christmas and New Year.
Galway Independent Column 2010 - 15 December 2010
After many months of speculation and foreboding the Budget was finally unveiled last Tuesday by the Minister for Finance, Brian Lenihan. Although by the time it was delivered many of the key elements had been either leaked or telegraphed in advance. The Budget speech itself was short and fairly bland, to the point where one tended to think, ’what was all the fuss about’, however, as is often the case the ‘devil was in the detail’. In fact, the Minister referred a number of times to supplementary documents as sources of further details and, needless to say, the National Recovery Plan 2011-2014 was never very far away from his remarks.
When the Budget document, the subsequent Government motions on Budget provisions and the Recovery Plan are all taken together the picture that emerges is not an uplifting one - the macro message ‘€6billion spending power taken out of the economy through spending cuts and increased taxation’. At the micro level this means households having €100, €200, €300 less to spend every month which means less money being spent in shops, on holidays, on entertainment, on the occasional treat, not changing the car, delaying the renovation i.e. a collective tightening of belts across society, which in turns means businesses having less turnover and having to cut costs, and inevitably having to reduce employee numbers which means job losses.
There were a couple of rays of light, however – the surprise announcement that Stamp Duty is being greatly reduced, the rejuvenation of the BES funding scheme for high potential businesses and the extension of the car scrappage scheme. It remains to be seen whether these initiatives will generate much needed confidence but for anyone about to purchase property there is an immediate much welcome benefit. The allocation of additional places on State Training schemes is to be welcomed as it will allow those seeking new employment or employment for the first time to gain valuable experience and new skills to compete for work.
Overall, though, Galway Chamber’s concern is for businesses and for jobs, and last week’s Budget is not good for jobs. Neither was last week’s decision by Galway City Council to vote against a proposal to reduce the €33million rates burden on Galway’s business community by 2.2%, instead opting for a token 1% reduction. The reported reaction of two prominent City Councillors to criticism of this token decision by Galway Chamber and its lobbying partners the Irish Hotels Federation, The Irish Vintners federation and IBEC is not unexpected. What is unexpected is that these Councillors represent political parties that traditionally are pro-enterprise and yet on this occasion when faced with the opportunity to support the owners of businesses who take risks, create jobs, sponsor sports and culture events and help make Galway the tourist attraction that it is, these Councillors and their Party colleagues vote against a meaningful reduction in Rates that could have saved jobs in our community.
Galway Chamber and its lobbying partners make no apology for asking Councillors to help save jobs in Galway.
Note: At the Public Meeting on Rates convened by Galway Chamber and our lobbying Partners and held on Monday December 3rd we were challenged by a number of Councillors to find savings in the Galway City Council’s Draft Budget. A number of costs in the draft document were discussed with Councillors and a number of potential savings were identified. The Councillors were also provided with the output of the Government’s Local Authority Efficiency Review Group which contains five pages of recommendations where savings totalling €544m could be achieved across all Local Authorities, if implemented.
Good News
Galway Chamber welcomes the very good news, released yesterday, that 105 new jobs are to be created in HP at its plant in Ballybrit. It was great to hear the urgency in the voice of Martin Murphy, HP Ireland Managing Director, on the news last evening when he indicated that the jobs were available ‘now’ and anybody interested in applying should send in their CV immediately online – access by googling ‘Jobs at HP’. There is no doubt that this positive job announcement, and the two other announcements in recent weeks which brings to over 300 the total of new jobs in Galway over the last six weeks, was influenced by our 12.5% Corporate Tax Rate – thankfully, it remained unchanged in last week’s Budget and when/if it is challenged by some of our EU partners, Galway Chamber will lobby/lecture and do whatever is necessary to retain this most important weapon in securing future jobs in this country.
When the Budget document, the subsequent Government motions on Budget provisions and the Recovery Plan are all taken together the picture that emerges is not an uplifting one - the macro message ‘€6billion spending power taken out of the economy through spending cuts and increased taxation’. At the micro level this means households having €100, €200, €300 less to spend every month which means less money being spent in shops, on holidays, on entertainment, on the occasional treat, not changing the car, delaying the renovation i.e. a collective tightening of belts across society, which in turns means businesses having less turnover and having to cut costs, and inevitably having to reduce employee numbers which means job losses.
There were a couple of rays of light, however – the surprise announcement that Stamp Duty is being greatly reduced, the rejuvenation of the BES funding scheme for high potential businesses and the extension of the car scrappage scheme. It remains to be seen whether these initiatives will generate much needed confidence but for anyone about to purchase property there is an immediate much welcome benefit. The allocation of additional places on State Training schemes is to be welcomed as it will allow those seeking new employment or employment for the first time to gain valuable experience and new skills to compete for work.
Overall, though, Galway Chamber’s concern is for businesses and for jobs, and last week’s Budget is not good for jobs. Neither was last week’s decision by Galway City Council to vote against a proposal to reduce the €33million rates burden on Galway’s business community by 2.2%, instead opting for a token 1% reduction. The reported reaction of two prominent City Councillors to criticism of this token decision by Galway Chamber and its lobbying partners the Irish Hotels Federation, The Irish Vintners federation and IBEC is not unexpected. What is unexpected is that these Councillors represent political parties that traditionally are pro-enterprise and yet on this occasion when faced with the opportunity to support the owners of businesses who take risks, create jobs, sponsor sports and culture events and help make Galway the tourist attraction that it is, these Councillors and their Party colleagues vote against a meaningful reduction in Rates that could have saved jobs in our community.
Galway Chamber and its lobbying partners make no apology for asking Councillors to help save jobs in Galway.
Note: At the Public Meeting on Rates convened by Galway Chamber and our lobbying Partners and held on Monday December 3rd we were challenged by a number of Councillors to find savings in the Galway City Council’s Draft Budget. A number of costs in the draft document were discussed with Councillors and a number of potential savings were identified. The Councillors were also provided with the output of the Government’s Local Authority Efficiency Review Group which contains five pages of recommendations where savings totalling €544m could be achieved across all Local Authorities, if implemented.
Good News
Galway Chamber welcomes the very good news, released yesterday, that 105 new jobs are to be created in HP at its plant in Ballybrit. It was great to hear the urgency in the voice of Martin Murphy, HP Ireland Managing Director, on the news last evening when he indicated that the jobs were available ‘now’ and anybody interested in applying should send in their CV immediately online – access by googling ‘Jobs at HP’. There is no doubt that this positive job announcement, and the two other announcements in recent weeks which brings to over 300 the total of new jobs in Galway over the last six weeks, was influenced by our 12.5% Corporate Tax Rate – thankfully, it remained unchanged in last week’s Budget and when/if it is challenged by some of our EU partners, Galway Chamber will lobby/lecture and do whatever is necessary to retain this most important weapon in securing future jobs in this country.
Galway Independent Column - 8 December 2010
Over 100 business people from Galway city and surrounding areas attended a Public Meeting on December 1 to
articulate their views on Commercial Rates. Organised by the combined lobbying group of Galway Chamber, IBEC, IHF and VFI, the meeting was chaired by Chamber President Carmel Brennan and Q and A directed by Chamber CEO Michael Coyle.
Each of the lobbying partners told the meeting of the position taken by their particular organisation and the common view was that Commercial Rates must be substantially reduced this year or jobs will be lost in the coming year.
The meeting was told by all speakers that jobs are currently at risk, that businesses have cut their costs to the bone and that an extra tax that isn’t related to ability to pay, is just not on.
When the meeting was opened to the floor each business contributor reiterated the need for cuts in Commercial Rates this year.
City Councillors who attended the meeting included Cllrs McNeilis, Connolly, Conneely, Nolan, Keane, Naughton while attendees from Galway County Council included Cllrs Cuddy, McClearn, Hoade and Broderick.
At the meeting the floor questioned what exactly we pay rates for, what do we get for our payments, what will happen in January when businesses will be forced to lay off staff. Galway Chamber and the lobbying partners had proposed a 10% reduction in rates, the floor questioned whether or not this was enough with some calling for 50%. Case studies were told from the floor with the common theme that enough was enough and businesses were now in such straits that they just couldn’t pay.
On the process of commercial rates a question was put to Councillors re their power in the matter. The general answer given was very little, ie ultimately if the councillors don’t manage to pass the budget and strike a rate the decision is then taken out of their hands and passed over to the Dept. of Environment.
The Councillors asked the meeting to put their suggestions for finding ways to reduce commercial rates without cutting frontline services. Michael Coyle finished the meeting by saying that the lobbying group had already sent to each City and County Councillor as well as the Acting City Manager and the County Manager five A4 pages of recommendations for cost cutting in Local Authorities suggested by the Local Government Efficiency Review, a body tasked with finding ways of cost cutting in Local Authorities. If implemented these recommendations would ensure savings that could then be passed on to the business communities in substantial rates reductions.
Other issues from the floor included the difficulty of dealing with the Council re payment plans or options regarding rates payments. Contrary to what the Council’s say it was the attendees views that it is not easy to negotiate with the Council regarding rates difficulties. The meeting believed that there was a distinct lack of flexibility.
Following the Public Meeting on commercial rates the lobbying partners invited each of the political groupings in Galway City Council to meet with them on the subject of rates prior to Monday’s Budget meeting. The partners met with Cllrs Keane, Crowe and Mayor Crowe from Fianna Fail; with Cllrs Conneely and Walshe from Fine Gael; Cllrs McNeilis, Cameron and Nolan from Labour and Cllr O’Flaherty from the Independents.
Again, on behalf of the members of Galway Chamber, the IHF, the VFI and IBEC we made a very strong case for a substantial reduction in commercial rates for the coming year. Again we pointed out to Councillors that we were not in favour of cutting frontline operations rather we felt that there are efficiencies and cost cutting that Local Authorities could put in place in order to make savings that could be passed onto ratepayers.
We pointed out that it is the entrepreneurs, the business people, the job creators who will lead our economy into profitability. These are the commercial ratepayers and they must be given breathing space to lead us out of this period of darkness.
What happened then….
However, on Monday night in City Hall Councillors voted to reduce Commerical Rates by a token 1%. We believe that jobs across Galway City have been put at risk following this decision. Ignoring the impending Government Budget which will be announced today and ignoring the need to reduce its cost base, Galway City Council decided to maintain a €33 million Rates burden on Galway’s business community.
Galway City Councillors decided to ignore the call for a 10% reduction in Rates. In doing so they also ignored yesterday’s Government Budget which at the time of writing was set to take €6billion out of the economy through Tax increases and spending cuts, they ignored the Government’s 4-year National Recovery Plan which calls for cost savings to be achieved by Local Authorities, they ignored the recommendations of the
Government’s Local Authority Efficiency Review Group which urges Local Authorities to integrate administrative functions with neighbouring Local Authorities and move to pooling resources and sharing services and they ignored the pleas from their own business community in Galway for support in order to keep business open and to maintain employment locally.
‘Despite significant levels of unpaid rates and many business closures and empty buildings Galway City Council voted to maintain a €33million Rates Burden on Galway Businesses, the vast majority of which are small businesses operating in vulnerable sectors such as Retail and Hospitality – jobs will be lost in these businesses’, according to Galway Chamber President, Carmel Brennan.
‘Galway City Council’s failure to recognize the difficulties faced by the Irish Economy and the need for change is a serious error of judgement’, added Terry Tyson, Chairman of the Vintners Federation of Ireland Galway.
‘Last night’s City Council meeting was an opportunity for the elected representatives and officials in City Hall to show leadership at this most difficult time for our economy – it was an opportunity not taken and the consequences for jobs in Galway could be very serious indeed’ said Michael Coyle, Galway Chamber CEO.
View the recommendations of the Local Government Efficiency Review Group on our website www.galwaychamber.com
articulate their views on Commercial Rates. Organised by the combined lobbying group of Galway Chamber, IBEC, IHF and VFI, the meeting was chaired by Chamber President Carmel Brennan and Q and A directed by Chamber CEO Michael Coyle.
Each of the lobbying partners told the meeting of the position taken by their particular organisation and the common view was that Commercial Rates must be substantially reduced this year or jobs will be lost in the coming year.
The meeting was told by all speakers that jobs are currently at risk, that businesses have cut their costs to the bone and that an extra tax that isn’t related to ability to pay, is just not on.
When the meeting was opened to the floor each business contributor reiterated the need for cuts in Commercial Rates this year.
City Councillors who attended the meeting included Cllrs McNeilis, Connolly, Conneely, Nolan, Keane, Naughton while attendees from Galway County Council included Cllrs Cuddy, McClearn, Hoade and Broderick.
At the meeting the floor questioned what exactly we pay rates for, what do we get for our payments, what will happen in January when businesses will be forced to lay off staff. Galway Chamber and the lobbying partners had proposed a 10% reduction in rates, the floor questioned whether or not this was enough with some calling for 50%. Case studies were told from the floor with the common theme that enough was enough and businesses were now in such straits that they just couldn’t pay.
On the process of commercial rates a question was put to Councillors re their power in the matter. The general answer given was very little, ie ultimately if the councillors don’t manage to pass the budget and strike a rate the decision is then taken out of their hands and passed over to the Dept. of Environment.
The Councillors asked the meeting to put their suggestions for finding ways to reduce commercial rates without cutting frontline services. Michael Coyle finished the meeting by saying that the lobbying group had already sent to each City and County Councillor as well as the Acting City Manager and the County Manager five A4 pages of recommendations for cost cutting in Local Authorities suggested by the Local Government Efficiency Review, a body tasked with finding ways of cost cutting in Local Authorities. If implemented these recommendations would ensure savings that could then be passed on to the business communities in substantial rates reductions.
Other issues from the floor included the difficulty of dealing with the Council re payment plans or options regarding rates payments. Contrary to what the Council’s say it was the attendees views that it is not easy to negotiate with the Council regarding rates difficulties. The meeting believed that there was a distinct lack of flexibility.
Following the Public Meeting on commercial rates the lobbying partners invited each of the political groupings in Galway City Council to meet with them on the subject of rates prior to Monday’s Budget meeting. The partners met with Cllrs Keane, Crowe and Mayor Crowe from Fianna Fail; with Cllrs Conneely and Walshe from Fine Gael; Cllrs McNeilis, Cameron and Nolan from Labour and Cllr O’Flaherty from the Independents.
Again, on behalf of the members of Galway Chamber, the IHF, the VFI and IBEC we made a very strong case for a substantial reduction in commercial rates for the coming year. Again we pointed out to Councillors that we were not in favour of cutting frontline operations rather we felt that there are efficiencies and cost cutting that Local Authorities could put in place in order to make savings that could be passed onto ratepayers.
We pointed out that it is the entrepreneurs, the business people, the job creators who will lead our economy into profitability. These are the commercial ratepayers and they must be given breathing space to lead us out of this period of darkness.
What happened then….
However, on Monday night in City Hall Councillors voted to reduce Commerical Rates by a token 1%. We believe that jobs across Galway City have been put at risk following this decision. Ignoring the impending Government Budget which will be announced today and ignoring the need to reduce its cost base, Galway City Council decided to maintain a €33 million Rates burden on Galway’s business community.
Galway City Councillors decided to ignore the call for a 10% reduction in Rates. In doing so they also ignored yesterday’s Government Budget which at the time of writing was set to take €6billion out of the economy through Tax increases and spending cuts, they ignored the Government’s 4-year National Recovery Plan which calls for cost savings to be achieved by Local Authorities, they ignored the recommendations of the
Government’s Local Authority Efficiency Review Group which urges Local Authorities to integrate administrative functions with neighbouring Local Authorities and move to pooling resources and sharing services and they ignored the pleas from their own business community in Galway for support in order to keep business open and to maintain employment locally.
‘Despite significant levels of unpaid rates and many business closures and empty buildings Galway City Council voted to maintain a €33million Rates Burden on Galway Businesses, the vast majority of which are small businesses operating in vulnerable sectors such as Retail and Hospitality – jobs will be lost in these businesses’, according to Galway Chamber President, Carmel Brennan.
‘Galway City Council’s failure to recognize the difficulties faced by the Irish Economy and the need for change is a serious error of judgement’, added Terry Tyson, Chairman of the Vintners Federation of Ireland Galway.
‘Last night’s City Council meeting was an opportunity for the elected representatives and officials in City Hall to show leadership at this most difficult time for our economy – it was an opportunity not taken and the consequences for jobs in Galway could be very serious indeed’ said Michael Coyle, Galway Chamber CEO.
View the recommendations of the Local Government Efficiency Review Group on our website www.galwaychamber.com
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.
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.
Subscribe to:
Posts (Atom)
Posts
