As the elected members of Drogheda Borough Council are scheduled to meet on Monday 19th December 2011 to vote on the Draft Budget for 2012, Drogheda Chamber of Commerce have issued a call to the Town Clerk Joan Martin, and the County Manager Conn Murray to bring about a reduction in Commercial Rates of -15% for the year ahead.
Commenting on the imminent rates budget meeting due to be held for Drogheda Borough Council President Padraic Kierans made the following points. ‘In the 10 year period from 1999 to 2009, the Annual Rate of Valuation (ARV) in Drogheda has increased by a massive 66%. In the following 2 years the ARV has only decreased by 5% from its 2009 high. All sectors of Irish life and the economy have recognised the need to be more cost effective and almost all sectors have responded by addressing their costs and reducing the charges they apply to their clients and customers. It is imperative therefore that a corresponding reduction is delivered by the relevant Local Authority in this case Drogheda Borough Council. A conservative and realistic expectation would be a reduction for 2012 in the order of -15% from the Drogheda Borough Council. This would show a meaningful and realistic response to current realities. The businesses which serve our local economy can thus continue to make themselves cost competitive and sustain employment within their respective commercial entities.’
A recent Drogheda Chamber Business Survey indicated how badly businesses have been affected by the downturn in the economy since 2009, with an average decrease in Sales of circa. 40% reported. Padraic Kierans [President of Drogheda Chamber of Commerce] insists that the Commercial Rates reduction is absolutely necessary to local businesses for the retention of business and therefore employment levels.
Kierans outlined the case for the reduction, “We published our ‘Town of Drogheda Regeneration Policy’ in July this year, which sets out this Chambers vision for the revitalisation of the local economy. The Local Authority needs to be focussed on the retention of existing businesses and attracting new businesses to the locality thereby improving employment opportunities as well as the actual intake of Commercial Rates to the local authority by volume. This adjustment must happen to reflect the cost cutting measures which the private sector has had to endure over the last few years.”
Drogheda Chamber has also called for a reduction in the water rates which increased in the locality by an incredible 440% in the 4 year period from 2005 to 2009. Since then water rates have not been decreased at all. The Chamber of Commerce has once again called for a 50% reduction in water rates, and Mr. Kierans outlined the justification for the called for reduction, “this is essential for sustainability of industry and in particular those industries being actively encouraged to expand in the food sector for example, to provide desperately needed additional employment and economic growth.”
Drogheda Chamber is suggesting a targeted reduction in rates that is appropriate to the cost saving measures businesses have implemented in recent years. While we recognise that commercial rates are an important form of local government funding, it must not be at the expense of industry and employment in the local area. In an effort to support the competitiveness of local enterprises and protect local jobs, we would urge the elected members of the Drogheda Borough Council to bring about the reductions which we have requested.
Drogheda Chamber has held a number of meetings with Town Clerk Joan Martin, County Manager Conn Murray, Drogheda Borough councillors including Mayor Kevin Callan, Richie Culhane, Frank Maher, Linda Bell-Woods, Anthony Donoghue, and Louth County Councillors Frank Godfrey and Paddy McQuillan, and Kierans was quick to praise those councillors for giving their time to listen to the Chamber and its members. “I thank all the councillors who gave us a chance to outline our position and I urge them to take a leadership role when the Budget is put forward, the Local Authority charges must fall - to reflect the current business activity levels in the economy.”
In 2011 the Drogheda Borough Council had a Budget of almost €27m, and there were Commercial Rates levied on businesses to the tune of €12.5m. That means the business community in the Borough contributed some 46% of the total DBC expenditure. This is 3% above the national average for all Borough Councils.
Businesses are the only sector that pays commercial rates and other specific charges; however they are excluded from having any input into how the revenue raised from commercial rates is to be spent. It is clear that a reasonable approach would be to permit those who are compelled to pay these charges some input into how the funds are dispersed. A civic benefit for all can be achieved by giving due regard to the insights of businesses on how certain issues impact the day to day life of a local community. Traffic management is a prime example.
It is vitally important that Central Government does not abrogate its responsibilities to local government and that it continue to maintain Local Government and Non-national road funding levels unchanged given the significant cuts to these budget items in recent years. Since 2007, the amount of funding that Local Government has gained from these sources has fallen from 32% to 22%. This is a vital stream of revenue for local government which must be maintained rather than cut back.
President Padraic Kierans is keen to see the Local Authority consider adopting the proposals outlined in the Town Of Drogheda Regeneration policy and specifically the requested adjustments of on-street Car Parking charges and All-Day Parking Charges, “We must make Drogheda a more attractive destination for visitors, tourists and shoppers. The decision to increase all day parking fees from the previous rate of €2 to €3 was a retrograde step and must be reversed. This increase in parking charges has seriously impacted on trade since its introduction, especially restaurants and public houses in close proximity to these parking areas.”
Kierans further outlined the need to provide a ‘FREE’ on street parking period in Drogheda, which could bring huge benefit for local businesses, “This would be a huge marketing opportunity which we could exploit very effectively. If people realise there is a ‘FREE’ parking period of for example an hour every day off-peak, then they will use that time to pop into the shop, bank, or post office and everyone benefits.’
“Drogheda must be more accessible and easier to negotiate by car for the consumer to have a more pleasant experience when visiting; we really need the local authority to provide in the budget for Electronic Car Parking Space Monitoring Signage on all the approach roads into the town centre. This would inform the prospective visitor of the availability and location of parking. Apart from being a direct benefit for the users this would also greatly assist in the reduction of traffic congestion in the central areas of the town, caused by the continuous search for parking facilities proximate to the visitors preferred area.”
Finally Kierans was keen to see Drogheda further capitalise on the positive impact of the Local Heroes project, “The elected Councillors of the Drogheda Borough Council have the chance now to form decisions in this budget which may determine how many businesses survive the next 12 months, and how many jobs can be sustained and created. The Councillors vote is very powerful and we need them to consider very carefully the proposals outlined in the TODR policy. Failing to deliver on a commercial rates cut will have a very negative impact on the local economy. If it is the case that figures presented in the draft budget do not make provision for a significant reduction in the rates for 2012 they do not have to be accepted and each councillor can reject them if they are not acceptable. I urge each councillor to show leadership and to act in the best interest of Drogheda Inc., and bring forward the necessary adjustments to facilitate a rate reduction.”
