The Galway Mechanics Institute remains in a battle to stay open after a state agency ruled it was liable for commercial rates.

The Middle Street voluntary organisation founded in 1837 had applied for an exemption from commercial rates on the basis it was a social club but Tailte Éireann refused and insisted it paid annual rates of around €12,500.

Anthony Douglas, president, said it was “baffling” that its request to be exempt from “astronomical” commercial rates was refused.

He insisted the building was operated by volunteers, and any money raised was re-invested into refurb and repair work on the protected structure.

Mr Douglas said Tailte Éireann’s letter confirmed that the request to cancel the rates on the grounds they are a club has been refused. But he said the letter did not give an explanation as to why.

They will seek clarity on the reasons for refusal and then appeal the decision. They may ultimately have to take a legal case.

“It’s a listed building, and a club since 1837. It is not a business. I can’t see how they refused it — our constitution states quite clearly we are a club. All the work we do is voluntary. We try to make money just to keep the place going. It’s a bit stressful for us,” he said.

Founded in 1837, the social club has been located on Middle Street since the late 19th Century.

It was part of a movement founded in Glasgow to educate young people how to use machinery during the Industrial Revolution.

In recent years it was used by several local groups including The Black Gate, Augustinian Church Choir, Galway Ukelele Group, Galway Connacht Rangers Association, as well as a local group for deaf people, Galway Cartoon Festival and University of Galway.

It functions as a social club for its members who play snooker, cards, and darts there.

Pictured: Galway Mechanics Institute: closure fears.