Mary Hanafin (Dún Laoghaire, Fianna Fail)

I am aware of the difficulties that many hotels, restaurants and other tourism businesses face in meeting the cost of local authority charges and have written to the Minister for the Environment, Heritage and Local Government regarding these costs. The issue has also been discussed and considered at the Cabinet Committee on Economic Renewal, of which I and the Minister for Environment, Heritage and Local Government are members.

I understand from the Minister that local authorities have taken a number of steps to reduce their own cost bases in order to minimise the charges they must pass on to customers, including businesses. These include reductions in staff numbers and payroll costs. Further reductions are to be made in the context of the report of the local government efficiency review group and the Government's four year plan.

I also understand that the Commissioner of Valuation is actively reviewing options which might hold potential for delivery of the national revaluation programme in a shorter timeframe than originally intended. Where they have taken place, revaluations have resulted in significant reductions in rates for hotels although other categories of premises have experienced increases. In any event, it is important that valuations are as up to date as possible.

It is vital that local authorities do their best to support jobs in their local area and to avoid putting unnecessary financial pressure on existing businesses through excessive charges. At the same time, I appreciate their funding is under considerable pressure in the current economic environment. I believe it is in everybody's interest that local authorities should have a broader and more sustainable income base from which to fund vital local services. The introduction of water charges, as signalled in last year's budget, will help to ensure that this is the case, as will other local charges.

A broadening of the revenue base at local level, will help to relieve some of the burden on tourism and other businesses. At the same time, given that the Deputy's party has a large proportion of members on the city and county councils I urge him to do everything in his power to ensure that his party councillors consider the needs of employers when setting their annual budgets, with a view to supporting jobs for local people.

See this speech in context