23 MARCH 2010
IMMEDIATE RELEASE

LABOUR CALLS FOR SNP ACTION TO PROTECT REGION’S AUCTION MARTS

Dumfries MSP Elaine Murray has called on the Scottish Government to help protect auction marts in Dumfries and Galloway from the pending increase in business rates by following Westminster’s lead and introducing transitional rates relief. Her concerns are shared by the Institute of Auctioneers and Appraisers in Scotland (IAAS).

The rates paid by non-domestic properties have been revalued and the new rates are due to come into effect on 1 April.

The Westminster Government has re-introduced transitional relief for auction marts in England for the 2010 Revaluation, which means they only have to pay a maximum increase of 12.5%. The SNP Scottish Government has refused to do the same in Scotland which means marts north of the border will incur the full cost immediately. The transitional relief in England will apply for five years, which means auction marts in Scotland will potentially pay more rates for the next five years.

Elaine Murray and the IAAS are concerned that this disparity will make auction marts in Scotland much less competitive than their English counterparts and this will be especially damaging for Dumfries and Galloway which is close to the border.

Elaine Murray MSP said: "Our auction marts are hugely important to the store, breeding and prime stock markets and play a vital link in the food chain.

"When the economy is so fragile we should be supporting these crucial marts but the refusal of the SNP to follow Westminster’s lead and introduce transitional relief means it is going to be very hard for marts in our region to compete with those across the border.

"The higher rates will put auction marts in Dumfries and Galloway at a disadvantage compared to those in England and I’m worried they could lose business.

"The fact they could face these higher rates for the next five years means we could see a protracted period of severe difficulty. The SNP have no time to waste. Unless they act quickly to bring us into line with the UK our auction marts risk serious damage come April."

Claudia Beamish, Labour’s candidate for Dumfriesshire, Clydesdale and Tweeddale added: "Scottish marts may have to pass costs on as they will not be able to absorb the increases. Our border areas are going to be worst hit by this perverse distortion in business rates. The UK Labour Government has recognised there is a very real need for transitional rates relief and it is extremely disappointing the SNP are going to sit back and let our marts lose business."

Dumfries and Galloway MP Russell Brown added: "This is just another example of the SNP failing to stand up for Scottish businesses. Their inaction will mean marts in Dumfries and Galloway will find it hard to compete and will further disadvantage our farmers who have only seen livestock prices recover very slightly."

ENDS

CONTACT – ANDREW MACKENZIE 07769206856

NOTES TO EDITOR

Every five years all non-domestic (business) properties are assessed, and given new rateable values. The next revaluation is due to come into effect on 1 April 2010 and all business properties will have their rateable values reassessed based on a valuation date of 1 April 2008.