TRAINERS and other equine enterprises are being hit by massive increases in their commercial rates bills having seen their businesses reclassified from ‘agricultural’ to ‘leisure’.
The issue is causing uproar in Kildare where some prominent trainers have received bills, or ‘proposed valuations’ for between €15,000 and €28,000 – up to 10 times what they had previously been charged. Most other local authorities around Ireland have not yet sent valuations to rate payers but are expected to follow suit in the coming months.
Jim Bolger travelled from Carlow to support his Curragh colleagues on the issue at a public meeting in Kilgowan, Co Kildare, this week. After one local trainer told politicians how her rates bill would force her to close her yard, Bolger castigated local councilors for allowing the situation to develop in the ‘Thoroughbred County’.
Michael Grassick of the Irish Racehorse Trainers’ Association is advising trainers to appeal their rates to the valuations office [valoff.ie] before the April 18th deadline. He is leading a delegation to meet the Kildare county manager next week.
“It makes no sense to classify the equine sector as ‘leisure’,” he said. “Trainers’ yards are registered as equine premises with the Department of Agriculture and racing is funded by Agriculture. Nobody can explain to us why this has happened – we’re just told ‘it’s coming from Dublin’.”
One Kildare trainer, who asked not to be identified, told The Irish Field his rates bill had gone from €1,700 to €15,000. “The valuers came in and measured all the covered buildings. They work out how much you would earn if you rented out those buildings and then you are billed for 25% of that figure.
“Like a lot of trainers, I have plenty of empty stables and haysheds. They calculated it would bring in €58,000 in rent and so I was told to pay €14,700. It’s outrageous and I won’t be paying it.”
A well-known Curragh flat trainer with 80 empty boxes has been asked to pay €30,000 in rates (from €3,000) and a jumps trainer with fewer than 10 winners this season has been charged €28,000 (up from €2,300).
Following Wednesday’s meeting the matter was raised in the Dáil on Thursday morning by Fianna Fáil TDs Fiona O’Loughlin (Kildare South), Jackie Cahill (Tipperary) and Charlie McConalogue (Donegal).
Deputy O’Loughlin said: “People genuinely feel they are going to be put out of business. It is absolutely appalling. We need a guarantee that this classification is going to change back to agriculture.”
The Tánaiste Frances Fitzgerald replied: “I don’t have the details on this but, given the concerns raised, I will ask Deputy Coveney (Minister for Local Government) to communicate with you directly on this. The heads of the Commercial Rates Bill are due to be published in April.”
One industry source told The Irish Field: “Trainers need to make as much noise about this as possible as it will be difficult to get the Government to agree to make any derogations.
“The commercial rates increases are causing huge problems for all kinds of traders – the town of Naas is in crisis – and only the publicans have been spared.”
Martin Heydon, Fine Gael TD for Kildare South and a noted supporter of the equine sector, said: “I am very aware of the concerns of many horse trainers who have contacted me regarding proposed increases in their rates bills.
“While the valuations office have informed me that there has been no change to the rateability criteria, it is vital that each business that has received a proposed increase, sends in their own specific appeal to the valuations office which can then be assessed.
“I continue to work with the Irish Racehorse Trainers Association to assist them and their members on this issue.”
For Kildare, final valuation certificates will be issued in September and will take effect from January 2018. There is a right of appeal to the Valuation Tribunal, an independent body set up to settle disputed valuations between the Valuation Office and ratepayers or local authorities.