Updated: Council Motion to Target Rates Reduction and Create 113 Jobs

Council Meeting 8th September: Motion on the agenda but no time at the meeting so deferred to the October meeting. Council Meeting 13th October: As we are so close to the budget it was agreed to take this motion directly to the Council’s Corporate Policy Group who will determine if and where it can be accommodated into the budget. People Before Profit tabled an amendment to the motion to cap the amount at a rateable value of EUR 60,000 and exclude businesses that are undergoing an industrial dispute. I can live with the latter but I would prefer to include a higher rateable amount. Amendment is also going to Corporate Policy Group along with the original motion. Budget Meeting 4th November: The cross party Corporate Policy Group opted to recommend a blanket 2.5% cut in commercial rates to go forward to the Council budget meeting for adaption, this means that my motion did not make it to the budget meeting. Obviously disappointed! I think we missed an opportunity to encourage enterprise, create jobs and better our county, I am determined to keep at this one……   Originally Posted 20th August: I recently put forward the following rates reduction motion to DLR Co. Council: Motion: “That this Council considers the establishment of a Commercial Rates Relief Fund equivalent to 2% of the 2014 Rates collection, and that this fund is used to pay the 2014 Rates bill of successful applicant businesses qualifying on the following criteria:  Receipt of assistance ensures that at least one full time job is either created or saved AND The qualifying business is either a start up or an existing business that...

What is the Purpose of the Strategic Banking Corporation of Ireland (SBCI)?

I welcome any initiative that encourages a flow of credit to small and medium sized enterprises in this country. In this regard I very much welcome the establishment of the Strategic Banking Corporation of Ireland (SBCI). At the same time I am concerned as to how effective this is likely to prove to be. The SBCI will initially make €800 Million available to Irish banks (and other TBD lenders) for onward lending to Irish SME’s. This fund has the potential to grow to €4Bn in time. The problem is that in September the European Central Bank offered Irish banks €8Bn which was partially intended for providing cheap credit to Irish SME’s. The Irish Bank’s largely rejected this funding, despite the fact that at 0.15% it is likely to be significantly cheaper than anything the SBCI can offer. Evidently the problem is not that Irish banks cannot access cheap liquidity. So what is the purpose of the SBCI?...

Banks Reject €6.4Bn Opportunity to Lend To Irish SMEs

It is concerning to see that Irish banks appear to have passed up on the opportunity to avail of the full €8Bn in cheap funding offered by the European Central Bank for onward lending to individuals and businesses within the Irish economy. Of particular concern is the demand for credit from viable SME’s that is very obviously not being met by lending institutions. The ECB’s €400Bn four year liquidity programme announced in June became available for draw down yesterday, Ireland’s share of this fund has been estimated at approximately €8Bn. The mechanism of this TLTRO programme is that member state banks can avail of a portion (7%) of their qualifying loan books on the condition that these funds are loaned on to Businesses (excl. financial intermediaries & mortgages) and Consumers (excl mortgages). There is no breakdown available of the actual amount of this funding drawn down by the qualifying Irish banks but early estimates put it at around 20% of their entitlement, this means that 80% or €6.4Bn of funding at 0.15% was not availed of. The problem arises during phase 2 of this TLTRO scheme, this is set to be significantly greater than the original €400Bn, any funding offered by the ECB under phase 2 will be a multiple of net new lending created by the application of phase 1. The upshot is that by not fully availing of this scheme Irish banks are not only denying immediate access to cheap credit by Irish business but they are also hampering the future competitiveness of Irish companies by shunning the opportunity to significant cheap funding in the future. There will be a second and final offering of phase...

Council Motion to Target Rates Reduction and Create 113 Jobs

I recently put forward the following council motion to DLR Co. Co.: Motion: “That this Council considers the establishment of a Commercial Rates Relief Fund equivalent to 2% of the 2014 Rates collection, and that this fund is used to pay the 2014 Rates bill of successful applicant businesses qualifying on the following criteria:  Receipt of assistance ensures that at least one full time job is either created or saved AND The qualifying business is either a start up or an existing business that increases it’s long term viability by receipt of temporary financial assistance” I brought this motion for two reasons: Firstly, I believe that when we come to framing the 2015 budget we should give due and serious consideration to promoting local enterprises. As Councillors we are elected for a 5 yr term, and therefore have responsibility for the financial health of this county beyond the short term time frame of just the next financial year. We have many responsibilities and many services to provide on a limited budget. But we must also make sure that we have adequate resources year after year in order to be able to meet the financial demands of running the county. To create economic activity and enable future growth we must be prepared to invest. Commercial businesses and enterprises in the county provide a not insignificant portion of our annual income, it is therefore in our interest to take measures to ensure the continued growth and success of local enterprises. Our ability to provide services into the future is tied to the economy of the county. The second reason that I proposed this motion, is...