Small city businesses are being offered a commercial rates’ reprieve next year.
In an early Christmas present, Galway City Council announced plans to reduce the commercial rates of city businesses who pay their liabilities early in 2017.
The measure, which could shave as much as €250 off small rate-payers annual bill, will be introduced as a pilot measure next year.
The Pilot Rates Payment Incentive Scheme was passed at the City Council’s Budget 2017 meeting.
Edel McCormack, Head of Finance, outlined the details of the scheme which involve offering discounts of 5% on commercial rates for rate-payers who have a yearly liability of less than €5,000.
They can avail of the discount if they pay their commercial rates for the full year before June 2017.
Some 65% of the rate-payers would be eligible for the pilot scheme, which she said may be extended in 2018 depending on how successful it is.
The measure was being trialled in order to help that cohort of commercial rate payers, who were vulnerable, and who were identified as more likely to be struggling to pay their rates. She said it was also an incentive to them to pay their rates.
Fianna Fáil City Councillor Mike Crowe said it was “unfair” that 35% of rate-payers were being excluded from the scheme.
Councillor Crowe said that all rate-payers were under pressure to pay their rates, and they all deserved equal treatment.
He said that big businesses with big rates’ bills could use the 5% discount to possibly take on another staff member, or invest it in other areas of the business.
The scheme is expected to be worth €270,000.
Ms McCormack said the pilot would be reviewed next July and she would report back to Councillors.
Overall, she said rates collections have improved in recent years.
Councillor Collette Connolly (Ind) wondered why 25% of businesses were not paying any rates at all. Ms McCormack explained that the rates collection used to be 62%, and then it was 66%, and now it was expected to be 75% by the end of this year.