This article is from page 22 of the 2009-08-25 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 22 JPG
CRIPPLING local authority rates emerged as a key issue causing se- vere hardship for hoteliers at a recent crisis meeting held by the Irish Ho- tels Federation (IHF).
Clare members expressed outrage at the exorbitant rates imposed and de- manded that, due to their inability to pay in the current climate, an emer- gency provision should be brought in to immediately reduce rates by 30 per cent for hotels and guesthouses. This would be in line with the recent result of the revaluation of hotels and guesthouses in the South Dublin
County Council area completed by the Valuation Office.
Hoteliers condemned as outrageous and extortionate the levels of local authority rates paid by hotels. The IHF bases the call for a rates reduc- tion on the fact that the revaluation carried out by the Valuation Office of all commercial premises in the South Dublin County area resulted in a re- duction of approximately 30 per cent in the local authority rates liability of hotels and guesthouse.
Therefore, it maintains that this level of reduction should be applied across all local authority areas until the revaluation process is completed
in each local authority area through- out the country.
According to Michael Vaughan, Chairman, Shannon Branch of the IHF, hotels and guesthouses are dis- proportionately subsidising the rates liability of other business premises. He states that hotels and guesthouses are being penalised by an antiquated taxation system of commercial rates that sees local authorities extract taxes relative to the size of premises without any recourse to the level of turnover or overheads of the business.
“Our members have been paying rate increases year on year without recourse to independent assessments. We have been asking too long for this issue to be addressed, and it hasn’t been addressed. Excessive local au- thority rates are having a devastating effect on hotels which are already struggling to deal with decimated revenues and cost bases that have not yet adjusted to the changed economic reality on the ground.
“Our members are willing to pay a fair and equitable level but simply can no longer bear the current rates that are imposed in this unprecedent- ed environment when a revaluation process should be completed,” says Mr Vaughan.
“We are calling for the introduction emergency provisions to allow for a 30 per cent reduction in local au- thority rates applicable to hotels and guesthouses until such time as these properties have been revalued as pro- vided for in the Valuation Act 2001 Act. Only one local authority area in the entire country has completed this process in seven years — we can no longer wait for the Valuation Office to complete this countrywide proc- ess given the dire circumstances our members are facing.”
Among the other issues discussed at yesterday’s meeting were a need to manage the substantial excess capac- ity that exist in the sector; distortion of the market with unfair competition as aresult of hotels under the control of the banks operating at below cost prices; severe difficulties faced by hotels and guesthouses in obtain ad- equate bank credit to survive through the recession.
They also discussed a need for the cost base of hotels to adjust to the worsened market conditions; exces- sive public sector charges to which hotels are subjected; potential for NAMA operations to introduce mar- ket distortions and unfair competi- none