I support the Bill as presented, and I welcome the accelerated passage afforded to it today.
The Assembly must react to the economic climate in which we find ourselves. We need to support our existing small businesses and encourage any potential new small business by the introduction of the Rates (Amendment) Bill and any forthcoming initiatives that go with it. The economic downturn has been difficult for a range of sectors, but it has hit our small businesses particularly hard. When walking through towns in my constituency of East Antrim, such as Larne and Carrickfergus, I find its effects very visible and very worrying. Other Departments are working on master planning for our provincial towns, with streetscapes and public realm schemes. However, if closure rates continue, particularly in the retail sector, those planned works will not matter too much. Although the Bill will not resolve the problem, it can take a small but meaningful and significant step towards trying to sustain town centres. In particular, where larger retailers have been sucking the blood out of town centres, it is time to put something back. Hopefully, the sacrifice made by larger businesses is understood on one hand and appreciated on the other.
Although this is the Second Stage of the Bill, there has been fairly substantial consultation and, indeed, public debate on it over the past few months. Hopefully, now, everyone has had their say, drawn conclusions and formed opinions. It is known that more than 98% of businesses in Northern Ireland employ fewer than 50 people. That is just less than half of the number of businesses that are registered for VAT purposes as having a turnover of less than £100,000. Therefore, small businesses are a crucial sector in the economy. Their contributions are vital to development in communities and will drive and support employment growth.
The additional support that any future expanded small business rate relief scheme is offering is around £6 million per year. There is no doubt that that will go some way towards helping the quoted 8,000 businesses in 2012-13. In Carrickfergus, where I am based, it is estimated that more than 300 small businesses in the borough will be beneficiaries of the scheme. That is an estimated 50% increase in Carrickfergus and, likewise, in Larne.
The large retail levy will affect, as the Minister has indicated with updated figures, 23 companies with 75 properties. Obviously, that includes Asda, Sainsbury’s, Tesco and other department stores. The average rates bill of those affected will be £66,000, as we have already heard. To put that into perspective, one large retailer — Tesco, I believe — was listed as having a £24·4 billion market capitalisation as of 15 January 2012. Therefore, £66,000 per annum can, surely, be absorbed by the multinational company over the three-year period. Indeed, many would already have been paying substantially more had rates review taken place before now. We appreciate and acknowledge the importance of multinationals to Northern Ireland’s economy and the positive impact that they have had on employment, and we want to continue to support their growth and sustainability. However, we would struggle to say that large businesses are in the same vulnerable position as small businesses.
Ten years ago, you would probably have had to travel some distance to find a Tesco, Sainsbury’s or Asda. Now, they have at least one large retail unit in virtually every provincial town. If you take a walk through most town centres today, you will find it difficult to say that they need another multinational. The evidence is clear from the boarded-up shops, derelict buildings and smaller retail outlets. Businesses are required in those centres. That is why my party welcomes clause 2. Even aesthetics would be improved by its provisions on shop windows and frontages.
Businesses, such as coffee outlets, shops, offices, restaurants and community facilities add footfall, vitality and liveliness. Improving the built environment and retail outlets in towns would attract a greater number of visitors and tourists to spend money in communities. The Rates (Amendment) Bill is a small but important step to try to help the sector. It is for those reasons that I urge the Assembly to support the Bill. My party is not saying that the Bill will rectify the problems faced. However, it will be an important step towards addressing the cost base and the very survival of the small business and retail sectors.
Many good points have been highlighted and arguments made with regard to the scheme’s boundaries and which businesses should be included and which should not. Lines have to be drawn somewhere. The scheme has reached the best balance possible at this stage. I welcome the Bill, and I look forward to the Minister's response.
|