A NEW rates rebate scheme is to be introduced by Cobh Town Council, Co Cork, to encourage new businesses to open there.
Saying he was confident of getting Government approval for the initiative, Mayor of Cobh John Mulvihill jnr said the council was breaking new ground with this scheme, which had not been used before in Ireland to the best of his knowledge.
"Having proposed this and fought to get the proposal through the council, I am confident it will create a business-friendly environment in the town of Cobh for those interested in investing and setting up business in the tough economic environment that all businesses are in," he said.
The scheme, which has the backing of Cobh Town Council, will operate under the 1970 Rates Act and entitle new businesses to a rates rebate over a four-year period.
The Labour councillor said the scheme demonstrated the imagination that town councils had to have in the economic environment.
"While I am conscious and aware that all businesses in Cobh are paying full rates, having spoken to many of them I am confident that this will be a scheme that will receive wide support among the business community in the knowledge [that] the more businesses that open, the busier the town will get and all premises will gain out of the scheme, Mr Mulvihill said.
"It will also help Cobh buck the trend in this current climate," he added.
The scheme will now go to the Department for Environment, Heritage and Local Government for final approval.
Mr Mulvihill said he was confident approval would be forthcoming having spoken to Minister for the Environment John Gormley about his proposal during the Minister's recent visit to Cobh.
A business that qualifies for the scheme will be entitled to a rebate on rates paid of 75 per cent in year one, 50 per cent in year two and 25 per cent in year three.
To qualify, a premises must be closed but available for lease or sale for a period of no less than two years.
Mr Mulvihill pointed out that the scheme did not cover situations where a business was closed and then reopened by a person connected with the owner, with the intention of seeking a rate rebate.
The average rates bill for premises is about €2,000 a year in Cobh.
