Cork Council to explore granting rebates to businesses to compensate firms affected by roadworks
Cork County Council is to examine if it has the power to grant a rates rebate to businesses seriously affected by roadworks, rather than seeking approval from the Government for such a move.
Councillors agreed to explore the possibility after they heard examples of how businesses have been seriously impacted by major infrastructure projects, while some firms were even forced to close because of the damage done to their business.
Three councillors — Marcia D’Alton, Seamus McGrath, and Michael ‘Frick’ Murphy — proposed a scheme providing for the waiver of a portion of the rates when businesses could demonstrate a reduction in turnover of 30% or more due to an extended period of road closures granted by the local authority.
They suggested that approval for this waiver scheme would be sought from the minister for finance in accordance with the requirements of Section 2 of the Local Government (Rates) Act 1970.
While Cllr John O’Sullivan agreed with them that this was an option he said he had been researching the issue and believed a more simple approach could be taken.
He said it was his understanding that providing a rebate was in the gift of the council and it didn’t need ministerial permission to do this.
“I’m aware of a small business which lost €30,000 because of road closures,” he added.
Mr D’Alton said prolonged road closures, be they for water or sewerage schemes, had significant impacts on businesses.
“Some customers may go elsewhere and never come back. If a business has to close as a result then the council loses rates. There needs to be a demonstration of empathy.”
Cllr D’Alton said.
Cllr Cathal Rasmussen said he was concerned that when works start in Cobh on the Cork Lower Harbour sewerage scheme it will have a massive impact on trade in the town — and the works could go on for two or three years.
Cllr Melissa Mullane said there had been huge disruption to businesses in Buttevant over a two year period when the whole main street was dug up.
Cllr Ian Doyle said Cllr O’Sullivan’s idea of a rebate was probably more workable.
He pointed to the example of Charleville, where six-weeks of road works were undertaken recently and some businesses there had reported a 50% drop in their turnover as a result.
“We’re awaiting culvert works in Bantry and this is causing a lot of worry for businesses and they could take some time to complete,” Cllr Danny Collins added.
Cllr Kevin Murphy said Kinsale was almost closed down from 2009 to 2011 because of major works, while Cllr Christopher O’Sullivan said OPW flood prevention works in Clonakilty during the summer had a negative impact on business in the town.
Acting mayor of County Cork, Cllr Seamus McGrath, said they would refer the matter to the council’s Development Committee to examine legislation governing rates and if the council could offer rebates off its own bat.
