HOTELS:THE IRISH Hotels Federation is taking legal advice about mounting a constitutional challenge or a judicial review to the Government's refusal to back down on commercial rates.
IHF president Paul Gallagher said 180 hotels and guesthouses are facing legal action if they do not pay commercial rates within six days. He warned that after three tough years in the business, the hotels have “nothing left to give” and cannot meet their commitments for rates.
The IHF is pressing for a 30 per cent reduction in rates pending the results of a nationwide review on rental valuations. The federation said such a move would cost €30 million, only 0.5 per cent of the local authorities’ budget, but would pay for itself through saving jobs.
Mr Gallagher warned: “There has been a complete unwillingness to engage on the issue from the top down, including members of the Government, local authority managers and the Valuation Office.
“We are now seriously considering the legal route because this may be the only route left open to us.”
Mr Gallagher, the manager of Buswell’s Hotel in Dublin, received a six-day notice for rates recently. Commercial rates cost the hotel €125,000 a year. “We had it, but others are not so lucky,” he said.
“The cash flows simply do not exist to meet these payments. Unless Minister Gormley shows leadership on this issue and intervenes, the situation will escalate with disastrous consequences for hotel businesses and knock-on effects for employees and suppliers.”
The IHF brought their case to the Joint Oireachtas Committee on the Environment, Heritage and Local Government last month.
