Rates relief for small businesses ‘a Ponzi scheme’ – Hyland

A NEW scheme providing relief for commercial ratepayers with bills of less than €20,000 has been labelled ‘a Ponzi scheme’ by a Westport county councillor.

Cllr Christy Hyland has described the newly introduced Increased Cost of Business Scheme as ‘a sham’ and ‘a three-card-trick’, claiming it will not offer any relief to businesses in the long-term.

Over 130,000 businesses who pay a commercial rates bill of less than €20,000 – approximately 87 percent of businesses – will be eligible for a maximum discount of 50 percent on their rates bill under the scheme.

Cllr Hyland claimed that businesses had seen rates increases that would exceed any relief that they would get under the scheme.

Several businesses in the Westport area are understood to have seen their rates bill multiply in recent revaluations.

Over 4,600 businesses are liable to pay a rates bill to Mayo County Council in 2024. The local authority took in over €37.2 million from commercial rates last year.

“You pay €4,000, that’s your rates for 2023…roll into 2024, your premises has been revalued and it’s gone up 300 percent, 500 percent, 600 percent. So instead of paying €4,000 in 2024, you’re paying €12,000,” Cllr Hyland told a meeting of the Westport-Belmullet Municipal District.

“But the Government are giving you back half of what you paid in 2023. It’s a Ponzi scheme. If I ever saw a three-card trick in my life…,” he added.

‘A major issue’

CLLR Hyland’s remarks were supported by Cllr Gerry Coyle, who warned that many rural businesses would not survive ongoing increases in rates and running costs.

Cllr Coyle, who owns a filling station outside of Belmullet, said that he was appealing his rates bill, which he compared to ‘going to the High Court’.

The Fine Gael councillor said he was ‘classified as if I was in the middle of Dublin of city’ despite not having to pay for water and waste and having no access to a town sewer or street lighting.

“The frightening thing about one case of someone who contacted me, nobody but nobody came to look at their premises. And I mean nobody, went into the workshop, the garage, the forecourt, or any other bit of the business, and [yet] they could send her out a valuation,” Cllr Coyle added.

Cllr Seán Carey, Cathaoirleach of the Westport-Belmullet Municipal District, agreed that commercial rates bills were ‘a major issue’, adding that the Increased Cost of Business Scheme ‘would not be enough’ to help struggling businesses.