IRISH HOTELIERS are threatening to withhold €27 million in local authority rates in a row over how their businesses are valued by councils.
The Irish Hotels Federation (IHF) yesterday said its cash-strapped members would now only pay what they could afford after the Valuation Office and local authorities refused to enter dialogue on the rates issue.
The IHF claims their plea for a 30 per cent waiver on the €90 million which hotels pay annually in rates has been ignored.
The hoteliers are threatening to hold back 30 per cent of the rates they owe on the basis that they cannot afford to pay them.
The IHF claims that nine years after the Valuation Act 2001 was introduced, with the aim of making the rates system more equitable, revisions have only taken place in two of the 88 rateable areas – Fingal and South Dublin councils.
“Our members pay 6 per cent of the rates in this country but only account for 1.5 per cent of GDP,” said John Power, IHF chief executive. “There’s clearly an imbalance there that needs to be corrected. Our members can’t afford this.”
He said the revisions in Fingal and South Dublin reduced rates by about 30 per cent and hoteliers want this to apply across the country.
The IHF said 900 hotels pay about €1,500 per bedroom in rates to local authorities annually. “The money is simply not there to pay rates at the levels currently levied,” Mr Power added.
Asked if his members are prepared to break the law by not paying their full rates, Mr Power said: “Hopefully it won’t come to that . . . hopefully sense will prevail. We’re just looking for a mechanism whereby we can enter into dialogue on the issue,” he said.
