Compromise likely on rates as chamber calls for freeze and council seeks 2% hike

A compromise is likely to be reached on a proposed increase in commercial rates when councillors meet to discuss the 2009 Budget this Friday as Athlone Town Council is seeking a 2% hike and the Chamber of Commerce is calling for a freeze on rates. Fianna Fáil Cllr John Butler said the council should be able to conclude its budget on the basis of a 1% rates rise. Speaking about the Chamber"s request for a rates freeze, Cllr Butler said: 'It"s not realistic for a local authority to come in on a basis of nil. If we"re able to retain the budget and offset the costs with a 1% increase everyone should be happy. Business people have difficulties at the moment and in dealing with the Budget I think it would be appropriate to meet them half way. 'The council has to run a business the same as everyone else and if we go with zero we"re undermining our own business. I think they (the council) are being fair to businesses. We had a 7% increase one year when it was needed in Athlone. We don"t know what will be required for the operation of the town next year.' His party colleague Cllr Kieran Molloy said he expected there would either be a freeze or a 1% increase. He said the council executive was trying to secure some sort of increase in order to keep services. 'There are difficult times ahead but they are difficult for businesses too, we don"t want to make it worse for them, but we have to retain services as well,' he said. Mayor Egbert Moran said he thought there would be a compromise at the end of the day. 'I"d be in favour of no increase but that"s not really feasible. We"ll be spending in the region of €800,000 on the town. That"s a huge amount of money available at the end of the day. It there is a rise it"ll be minimal. We"ll reach some compromise. We"ll be hoping for nil but I don"t think that"ll happen,' he said. Independent Cllr Austin Berry said he thought 2% was too much. 'Any increase in rates this year would be too much, with the downturn in the economy and the effect the one-way system had on the businesses in the town. I"m going to be asking that they don"t have any increase,' he said. Labour Cllr Ray Lennon agreed with Cllr Berry, saying he didn"t think it would be the end of the world if there was one year without an increase. 'I suppose the way things are business people would be looking for a freeze, but from the council"s point of view they have to get in revenue. My view would be for a freeze, but maybe a compromise could be reached at 1%. I can"t see why there needs to be an increase every year.' Fine Gael"s Mick O"Connell said he felt the council needed to minimise the impact on business considering they would have a tough time in the year ahead anyway. His party colleague Cllr Mark Cooney said: 'Zero would be ideal, but 1% will be less than the rate of inflation. I would be aiming towards a reduction from the 2% but we"ll have to wait and see when we hammer out the figures where we can make up the difference.' The Athlone Chamber of Commerce has called on the council to freeze the commercial rates saying an increase in the current economic climate would have serious implications for businesses already struggling with rising costs. In a statement issued this week, The Chamber said: 'The Chamber is urging Westmeath and Roscommon County Councils and Athlone Town Council to apply restraint when setting local authority charges for 2009 and ensure that there is no increase on rates in 2009. As the rate of inflation is predicted to be at 0% next year there is really little justification in increasing charges to businesses. Given the additional income stream for local authorities arising from the recently introduced levy on second properties (private rented accommodation, holiday homes and other non-principal residences) €200 per dwelling, local authorities will have very little justification for any increases this year. In addition in Athlone the town council next year will have the benefit of full rates from Golden Island Shopping Centre in addition to a full Athlone Town Centre, which increases their revenue.' President of Athlone Chamber of Commerce Aengus O"Rourke said: 'The continued upward trend in local authority charges for business is unsustainable and runs counter to broad national enterprise aims. Businesses in the Athlone area are already facing significant increases in wages, energy costs and we know from talking to our members insurance costs are also on the increase, and any additional increase in local authority charges, will further serve to undermine their competitiveness.'