Galway Chamber seeks extension of rates waiver scheme
Galway Chamber has called for an expansion of the commercial rates waiver scheme to a longer term and for the inclusion of businesses which have continued to trade during the crisis.
The representative group has also called on Government to extend the three-month rates waiver for businesses which were forced to close their doors.
The calls follow the publication last week of a survey of 100 businesses in Galway City, which found that one quarter may have to go into ‘hibernation’ until next Spring.
Earlier this month, the Department of Local Government announced that rates would be waived for a three-month period – from March 27 – for businesses that were forced to close due to the pandemic.
The Chamber have now asked for an extension to that three-month waiver, and for businesses which continued to trade to qualify for the exemption.
Kenny Deery, CEO of Galway Chamber said: “While the move was welcomed by many as a step in the right direction, it was clear that three months was an inadequate period of support and the term needed to be expanded.
“Furthermore, Galway Chamber are calling for the Department to expand the scope of the commercial rates waiver, so that it can be applied to businesses who have been negatively impacted, with a proportional rebate, rather than just businesses who have had to close.
“We are suggesting that the criteria of a 25% decline in turnover should be the test for eligibility, as is the case with the Wage Subsidy Scheme.
“As it stands, the waiver has the possibility to act as an adverse incentive for businesses to remain closed for longer than may be necessary.
“Rates income is vital to allow the local authorities provide necessary services throughout the city and county. Galway Chamber, along with colleagues in Chambers Ireland, are calling on Minister Eoghan Murphy and the Department of Housing, Planning and Local Government to support the local authorities with central government funding to replace this rates income,” said Mr Deery.
According to the Chamber survey, 80% of businesses in the retail and hospitality sectors said the rest of 2020 is about survival, while overall, 24% said they are “seriously considering” not reopening until Spring 2021.
It found that 80% of businesses wanted the rates waiver to continue beyond the three-month limit.