Response to City & County Council Budgets
21st December 2010
Cork Chamber responds to Cork City and County Council Budgets
Cork Chamber today welcomed the decision by Cork City Council and Cork County Council not to increase commercial rates and local authority charges in 2011 and acknowledged both local authorities’ cognisance of the inability of Cork’s business community to finance any increased levels of expenditure, but warned that current government policies are jeopardising local government and placing an unfair burden on the business community.
Cork Chamber Chief Executive Mr Conor Healy said, “Cork Chamber recognises the hard decisions taken by both Councils in preparing balanced budgets given the current difficulties the economy finds itself in. The move by both Councils to ring fence 1 per cent of rates income, equivalent to over €1.5 million for an economic development fund for the first time is very much welcomed by the Chamber. This is something we have been actively lobbying for and it is our hope that the percentage to be ring fenced can be increased in the coming years. We also welcome Cork County Council’s decision to reduce water delivery charges by 3% in 2011 and their foresight in reducing development contribution charges by up to 42% effective from January 1st 2011 in an effort to stimulate job creation and development”.
“It is however extremely disappointing that the Council’s were not in a position to pass on the benefits of their reductions in expenditure and enhanced efficiencies through a reduction in commercial rates to the business community. It is important to state that this is largely as a result of incessant reductions in the Local Government Fund grant from central government. Cork Chamber has continually pointed out that it is critical we create strong local government models, which are properly resourced to foster regional economic development. If this does not occur, central government runs the risk of being the catalyst in the deterioration of local government services”, Mr Healy went on to say.
“In 2011, central government needs to implement cost containment initiatives in areas where additional costs are being placed on local authorities on an ongoing basis. This is crucial if we are to see a decrease in the dependence of local authorities on the business community as their primary income source in the near future. For example, if for the duration of the National Recovery Plan 2010 – 2014, the impact on Local Government of additional regulatory requirements and legislative impacts such as planning and waste policy could be frozen, this would be a proactive first step. We also need the commercial rates system to be able to respond to the radically different economic situation we are in. Appropriate legislative changes to rating law is urgently required to enable a flexible response to the challenges faced by the SME sector, multinationals and new business start ups”, concluded Mr Healy.
Cork County Council's Budget is available here
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