LIMERICK Chamber has welcomed the fact that the initial proposal to increase commercial rates by 4.5 per cent was not passed by local councillors.
Chamber CEO Dr James Ring warned however that the local authority “cannot see business as the funders of last resort”.
“Businesses create employment and support jobs. The local authority needs to balance its budget by reducing expenditure or broadening its income base, not see businesses as an easy option to plug the hole in overspend,” he continued.
“Limerick has gone through a very successful rebrand as an attractive location in which to do business and invest; the level of inward investment in recent months is testament to this. We cannot damage this brand by communicating a message that businesses are viewed as funders for the local authority.”
Dr Ring welcomed the rates rebate scheme, which he noted should “support our city high street as well as encouraging business in the rural villages and towns across the county”.
However, he urged caution about the messaging of a rates increase, particularly for global corporates.
“While the business support scheme of a rates rebate for SMEs paying less than €20,000 is welcome, if we apply national averages these businesses account for approximately 42 per cent of employment. Our economy ultimately needs larger corporates – not just to choose Limerick as a place to locate, but to remain committed to Limerick,” concluded Dr Ring.
