THE 2.8% increase in commercial rates imposed this year by Limerick City Council was condemned as outrageous and out of touch with economic reality, by Michael Vaughan, Shannon Branch of the Irish Hoteliers Federation.
Speaking in Killarney, He urged the Government to reverse the increase for 2009 and place an embargo on any additional hikes.
“Our archaic system of commercial rates places a disproportionate burden on hotels and guesthouses by extracting taxes relative to the size of premises without any recourse to the level of turnover or overheads.
“Limerick hoteliers are calling on the Government to implement a more equitable system of local government funding that supports businesses and employment within the hospitality sector.
“In the meantime, the Government cannot stand by and allow local authorities to continue as if no economic crisis exists. It must veto all increases in rates and charges and compel councils to make up any shortfalls through increased efficiencies in their services and operations”.
The IHF maintains that allowing unfettered increases in local authority rates and charges is a recipe for disaster.
“What we need now are measures that bolster business and business confidence in order that they can drive the economy through current difficulties. The last thing we need is for local authorities to increase their taxes and charges without any account been taken of the ability of businesses to pay them or the impact that they are having on the survival chances of enterprises,” concluded Mr Vaughan
