‘Stealth tax’ could cripple businesses
Wednesday July 28 2010
NEW businesses currently opening up in Drogheda are being hit with a crippling levy from Drogheda Borough Council to pay for parking, with sums from €8,000 to almost €40,000 currently being sought.
The levy, which some traders have described as 'a stealth tax', comes into play if a planning application for change of use is required, but many who have already paid, or are being asked to pay, feel the amount is too high and putting off new businesses.
'I am only open six weeks, and have had a great reaction from Drogheda coffee-lovers,' says Niamh Fagan of Traders Coffee Co, Laurence Street, 'but because of this parking levy, I am starting off a new business with a debt round my neck of €8,500 or €12,500 if you include the rates.
'I knew about the rates, but not about the parking levy, and I simply don't have the money and it could close us down.
' Years ago, a bank might have loaned you the money, but those days are gone.'
Niamh agrees the council have given her 18 months to pay the fee, and understands they have now reduced the parking levy by 75% for brand new applications, but this is too late for her business.
'My big problem is that if a coffee shop opened up beside us now, who had a change of use, they would have an unfair advantage, as they would be almost grant-aided by 75%,' she says.
'I don't mind paying a parking levy per se, even though I wouldn't even get a space out of it, but €8,500 is astronomical, and I think imposing this levy is attracting the wrong sort of business.
'Instead of artisan food shops or cafes, there is a danger we will end up a town of pound shops, tattoo parlours and betting shops.'
There is also confusion has to what exactly the large parking levies are spent on.
' They'll probably argue that they have provided the parking facilities already, but the council are also competing against commercial space like the Laurence Centre, who have fantastic deals like all-day parking at €3.60,' she points out.
'I park there, as couldn't afford to park outside my own business, as I kept getting parking tickets being too busy to keep feeding the meter.'
The final worry from this new trader is that a black market will stem from this, as new businesses are put off by the cost.
'I went about things the right way and got caught in net that I can't get out of,' says mum-offive Niamh.
'If the council got rid of this levy, they could advertise it to the nation, attracting an endless amount of quality businesses to the town, and really get our economy back in the black.'
- Alison COMYN
