Vacant Dunnes in Tralee highlighted in Senate debate

A LONG vacant retail unit in Tralee has been cited as a prime example of the need to reform Ireland’s commercial rates system during a recent debate in the Seanad.

Earlier this month Clare-based Senator Martin Conway used the former Dunnes Stores outlet on Bridge Street in Tralee to illustrate his argument in favour of reforming how commercial rate refunds are handled.

At present in cities, the owners of vacant retail units can claim a 50 per cent rebate on the rates paid for that unit. However, in rural towns the owners can claim a 100 per cent refund.

Senator Conway said that this has led to a situation where the owners of these units – often large retail chains – have no incentive to see the units occupied and, in some cases, will actively seek to keep the premises empty in a bid to lessen or prevent competition.

To end such practices, 100 per cent rate rebates were abolished in the major cities and Senator Conway has called for the measure to be specifically extended to all large rural towns.

At present local authorities can vary the rate rebates they offer but this has to be done on a county-wide basis and specific regulations can’t be applied to particular towns.

It was mainly for that reason that Kerry County Council opted to keep its refund rate at 100 per cent in its last budget.

“A large unit in Tralee town centre from which Dunnes Stores traded successfully for many years is now empty. The company was so successful in the town that it decided to build a big out-of-town unit on a greenfield site,” Senator Conway said.

“As a consequence, its former unit in Tralee town centre has been empty for some time. The existence of this vacant unit in the centre of Tralee is choking development in the area. It is fair and reasonable to expect a successful company like Dunnes Stores to make a contribution towards the rates bill for what I would describe as a derelict site,” he said.

“The way it used to work was that a company with one of these units would pay rates on that unit before claiming those moneys back by demonstrating that the unit was available for renting to a suitable client who could meet strict terms and conditions. To deal with this problem in Dublin and other big cities, it was decided to introduce legislation limit to 50 per cent the rebate such companies could get on their rates,” he said.

“The particular example in Tralee is replicated in towns all over the country,” said the Senator.

“I have huge sympathy for somebody who goes out of business and is having difficulty in renting a unit, given that it may require significant investment to bring it up to an acceptable standard and the particular client may not have money to do so. However, it is a different ball game when there is a major company with significant profits which is in a position to prevent this from happening,” said Senator Conway.