Fianna Fáil is demanding changes to be made to the current rates system to lighten the burden on small and medium businesses in Donegal.

Donegal North East Charlie McConalogue TD said Donegal towns have says borne the brunt of the recession but are failing to see many signs of recovery.

Deputy McConalogue said: "Boarded up shopfronts are a common feature of villages and towns in the country, yet the Government has failed to take concrete measures to reduce the pressure on smaller businesses, many of which are family run ventures.

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"Current legislation makes it very difficult for entrepreneurs to set up new businesses. We need a new system that creates breathing space for retailers who may be experiencing financial problems, as well as helping to incentivise new businesses to set up in our towns so that the economy can grow again."

Last week Deputy McConalogue brought forward a Bill in the Dáil aimed at streamlining rates across the country, to create a fairer, more cohesive billing structure.

He continued: "The Local Government (Rates and Miscellaneous Provisions) Bill 2014 will introduce a single mechanism for annual rates valuation, a refund scheme for vacant properties and a new review system. It also deals with the question of landlords' liability for rates, which have not been paid by tenants.

"I have been contacted by business owners across Donegal who are frustrated by the current system placing costs on them that bear no relationship to the financial realities of their business. These exorbitant costs are a deterrent to new business and are smothering existing ones."

(CD/MH)