Derating Policy Comes Under Fire

The industrial derating policy which is currently in place has come under fire from, among others, People Before Profit MLA Gerry Carroll, who has described the policy as obscene at a time when public services are suffering from grave under-funding and the Stormont Executive is under severe financial pressure to make further budget cuts.

Mr Carroll says that it is mainly the big multi-national companies that are taking advantage of this derating policy and are enjoying rates handouts, which are believed to come at a cost of over £70 million. Industrial derating includes a 70% discounted rate for manufacturing and food production spaces, with over 4,000 properties benefiting from this offer.

Stormont Under Pressure To Raise Revenue

This policy is in place at a time when the Stormont Executive needs to raise £113 million as their side of the bargain so that the Treasury will then write off around £600 million of the debt that the Executive have built up over the past few years.

Mr Carroll, quoted in an article in the Belfast Telegraph, is adamant that it makes no sense for the derating policy to be in place when the government badly needs to raise revenue. He says in the article:

“It is unacceptable for multinational corporations to avail of such obscene handouts,” he said.

“Ordinary people have had their rates hiked year-on-year, while corporate profiteers are allowed to hold on to millions in unpaid rates.

“Just last month, we were told Stormont needed to raise £113 million to invest in public services.

“The Executive could take tens of millions off multinational corporations at the stroke of a pen if they were prepared to challenge the rich.

“Every penny we let these corporations keep is money lost to our public services.

“The Finance Minister needs to urgently review industrial derating to stop massively wealthy corporations from raking it in at public expense.”

The Derating Policy A Lifeline For Many Businesses

However, there are lobby groups such as Manufacturing NI, who claim that the derating policy is a lifeline for many businesses and to curtail this policy now would cause real issues.

In response to the criticism by Mr Carroll, a spokesperson for the Department of Finance is quoted in the same article as saying:

“Industrial derating is awarded to around 4,400 industrial properties that are eligible for the relief,” they said.

“Industrial derating was part of the revenue raising consultation on non-domestic and domestic rating measures.

“The Finance Minister will be assessing the findings of the consultation, alongside a number of other strategic areas within the rating system.”