Recently, an editorial letter penned from Kenmare highlighted the struggles faced by local businesses in small Irish towns. It depicted a distressing picture of once-vibrant towns losing their vitality as shops closed down, customer traffic dwindled, and commercial charges escalated. This, in turn, subjects the remaining operational businesses to inflated charges to keep local services afloat. This taxation method inherent system contradiction intensifies the problem, making a downward trend almost inevitable when a town loses its appeal.
The fondness I have for Kenmare is not merely due to the Dublin Economic Workshop’s traditional hosting location, but also because of the Riversdale nightclub located nearby. The reach of the Riversdale nightclub- a fitting term considering the area- stretched over vast distances. Memories of huddling in my cousin’s car in Ballyvourney, West Cork, and navigating the backroads to Kenmare are inherent parts of an early 1990’s Saturday night.
Sadly, the Riversdale nightclub and its complementary hotel are no more. Furthermore, according to the letter’s author, Kenmare, a once-thriving destination for locals and foreigners alike, is sharply dwindling. Despite having a population of 2,500 and an education level higher than the average county – 27% of the locals boast of further education qualifications – Kenmare has observed a slight population increase of 1.3% since 2016, its employment rate still sits much higher than the national average at 12.6%.
The most visible indicator of the troubles in Kenmare is the increasing number of vacant and ultimately, dilapidated properties. When property vacancies surge, it deters potential buyers or renters, reinforcing the rising deterioration of the cityscape. The issue of vacancy can, unfortunately, perpetuate itself.
E-commerce has significantly impacted traditional retail spaces; however, as the letter’s author points out, the exorbitant rates are a primary concern. As these rates inflate, it deters entrepreneurs from launching new ventures, whereas already-established firms start reassessing their profit margins, potentially leading to shut down.
Since 2008, the development of housing in small Irish towns has significantly decreased, primarily due to the lack of financing for small-scale developers and the aftermath of past ‘ghost estates’, a common feature during the Celtic Tiger. This has resulted in negative ramifications for the growth of rural communities.
To enhance a small town’s appeal, it is crucial to design an effective planning or zoning strategy. Small Irish towns form an integral part of the country’s social tapestry and are dynamic ecosystems composed of a range of elements from retail stores, pubs and restaurants to schools, churches and sports clubs, all brought together under the united banner of community. An ideal town design encourages the interaction of locals socially and commercially within a common space.
Moreover, an emphasis should be put on facilitating both work and leisure activities within the town, regardless of external competition such as e-commerce giants like Amazon or larger shopping centres located on town outskirts. Nurturing the commercial hub is a priority, making it crucial for planning regulations to adapt to up-to-date living situations. In circumstances where a large presence of shops or businesses at ground level is not feasible, it should be possible to readily change commercial zoning into residential areas to promote diverse living.
The vitality of a town does not solely depend on the quantity of shops but on the number of individuals frequenting them, making the demands for all ground-floor premises to be commercial rather outdated considering the current era of online shopping. Encouraging a combination of residences and shops at the ground level could result in a diverse ecosystem and accessible housing by reducing construction and reformation expenses. Adhering to primitive concepts of urban landscapes is irrational in today’s context.
Finally, in relation to taxation, if they pose a hindrance, they must be addressed promptly and appropriately for the betterment of these small Irish towns.
Local councils are critically constrained by their reliance on local taxes for funding, an issue which continually distracts from larger problems. Notably, local political heads and community representatives express concern over the declining condition of rural Ireland and smaller towns. It would be preferable for development in Ireland to be spread evenly, with a shift towards more rural construction and decreased city growth, particularly in Dublin. However, it is a fundamental economic principle that resources and skills gravitate towards urban areas, presenting a significant advantage for multinational corporations at the detriment of smaller enterprises.
The promotion of numerous small businesses is an essential factor for prosperous countries. This needs to be replicated across the regions, to spark economic vitality. To solve these pressing concerns – one focused on funding, the other on economic predictability, there needs to be a redistribution of finances. The latest data from the Central Statistics Office indicates that local government tax income was €2 billion in 2022, where €1.5 billion is derived from business rates. This figure forms an economic constriction for local government, pressuring it to enforce business rates.
While €1.5 billion may seem a substantial amount, it pales in comparison to the complete tax revenue of Ireland which is around €110 billion. Furthermore, in the same year, tax from multinational corporations was €23 billion. Thus, what would be the harm in requiring these multinational corporations to pay business rates?
Consider the figures: Ireland managed a surplus of €8.3 billion in 2023, with a predicted €9.7 billion surplus in the following year. Why not use this surplus to fund business rates? Alternatively, we could approach multinational corporations with the rural development issue and propose a ‘solidarity tariff’ to support the nation through which they generate considerable revenue. Surely, with the profits they make, they would welcome this approach?
Perhaps a middle ground could be that these corporations contribute a bit more tax and a portion of the budget surplus could be redirected to cover the business rates. This would offer a solution to the business rates problem and foster an economic flow from the city centres to regional areas. It may be feasible to impose a limitation on who is eligible for this support, confining it to small towns with populations below 4,000 as an example. There are certainly adequate funds in circulation to enable such innovation.
It’s absolutely vital for a prosperous nation to foster an environment that encourages multiple small enterprises. Such an entrepreneurial spirit should not be confined to certain regions but should be spread across the entire country to boost economic vitality. Adapting the building plans in smaller towns to incorporate residential living spaces in the dual-core areas, in line with changing digital trends, is a rational approach. This can be achieved by reallocating funds from one sector to another.
The earnings from multinational corporations are a key tool that, when creatively employed, can address various financial, communal and regional issues. Shouldn’t we leverage this tool to envision a better future for our country?