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Make them pay rates 10.09.08
by Liam Porter, Inishowen Independent
A BUNCRANA-based businessman has called on the
Minister for the Environment, John Gormley to
introduce new measures to ensure that owners of
vacant properties are made to pay rates.
Francis Callaghan, owner of the Digitalfone O2
stores maintained that many of the owners of vacant
properties are using them solely as an investment
and have no intention of either renting or selling
them.
“If they place a ‘to let’ sign up on these
properties they can evade paying rates but while
these properties lie vacant other businesses are
being left to foot the rising rates bills,” he
claimed.
The Digitalfone O2 owner outlined in a letter to
Minister Gormley how the UK system discourages
leaving commercial buildings empty by making owners
of vacant properties accountable for the rates. |
“When a property
becomes vacant the rates liability automatically
reverts to the landlord until the property is either
sold or redeveloped. This system means the option to
use the vacant property as an investment vehicle is
removed.”
Mr. Callaghan who owns property in the UK, says he
knows from personal experience that it does not make
sense to hold on to a commercial property over there
as an investment.
“Within weeks of my property becoming vacant the
council contacted me to inform me that because the
property was now |
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vacant 50% of the rates
were due because the property was vacant. They went
on to inform me that this rate would go to 100%
after 12 months and it would keep increasing in the
following years if the property still remained
vacant.”
Introducing a similar system here would, according
to Mr. Callaghan, be a win-win situation for
everybody.
“Not only would it mean that the local authorities
would gain extra rates, it would also mean local
builders would find employment in re developments
and it would also boost tourism by removing the
blight of vacant shops and commercial properties
from every town in Ireland.”
The local store-owner says he has spoken to local
councillors who agree that the introduction of such
a system would be a good idea, but who told him they
would have no authority to introduce it.
“I decided with that in mind to write directly to
the Minister and outline how the system works in the
UK. I think now that there is such a focus on where
funding can be sourced that this is something the
Irish government should implement as soon as
possible,” he concluded. |
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