LETTERKENNY Chamber of Commerce has written to Donegal County Council voicing concern that the proposed hike in commercial rates would place an additional burden on enterprises that are the backbone of the local economy.
CEO of Letterkenny Chamber of Commerce, Toni Forrester, sent the correspondence on behalf of members yesterday, on the eve of Donegal County Council’s adjourned budget meeting in Lifford this morning.
The meeting, which had been due to be held yesterday, was adjourned until 10am this morning to allow members to attend the funeral of former County Manager, Michael McLoone in Ballyshannon.
The meeting, which broke up without agreement on Friday, November 21, was due to reconvene yesterday, after members had refused to accept the executive’s recommendation that commercial rates be increased by five per cent.
However, in order to facilitate members attending the funeral of Mr McLoone yesterday morning, Cathaoirleach, Councillor Paul Canning convened the meeting online, and immediately sought and received a 24-hour adjournment.
But, with the clock ticking as midnight tonight is the deadline set by government for a rate to be struck, Ms Forrester has called on Donegal County Council to think carefully about the repercussions to local businesses if commercial rates were to rise.
Ms Forrester said local businesses are already navigating a challenging environment marked by rising costs, (minimum wage, auto enrolment), inflationary pressures and ongoing uncertainty in consumer spending.
“Many of our members are small and medium-sized enterprises operating on tight margins. A rates increase could threaten their viability,” the written communication states.
“Local businesses provide essential jobs and services. Increased rates could lead to reduced staffing, curtailed expansion, or closures.
“Higher costs risk undermining the county’s attractiveness for investment and entrepreneurship compared to other regions.”
Ms Forrester added that businesses are “continually being asked to carry a disproportionate burden in terms funding local government”, adding that the Chamber believes a new method needs to be found.
“We urge you as our elected members to consider the timing of this proposal and to engage in meaningful consultation with the business community before making decisions that will have long-term consequences.
“We also request that the council explains more clearly where the rates are used and specifically how they contribute to the work of the council the impact on the economic and social fabric of the county.
“We respectfully request that Donegal County Council reconsider the proposed increase and explore alternative measures to balance budgets without disproportionately impacting local businesses.”
The missive added: “The chamber is committed to working constructively with the Council to identify solutions that support both fiscal responsibility and economic growth.”
