Cork Regional Chambers Calls on Council to Commit

2nd December 2013

Cork Regional Chambers today called on Cork County Council to commit to a period of adjustment of 10 years for Town Council areas which will be integrated into the Council, which has higher rates than towns such as Midleton and Mallow, to allow businesses the time to adapt to the costs resulting from increased rates.

Speaking this morning, Chairperson of Cork Regional Chambers Mr. Donal Kellher, said “We have consistently supported the reform of Local Government and recognise the considerable savings produced by this sector to date. The recent publication of the Local Government Bill is another step towards a more streamlined and sustainable model of Local Government.”

“However, we have concerns about areas where Town Councils are to be abolished and replaced by municipalities to be integrated into County Councils which have higher rates. Towns where this issue arises in Cork include Mallow, and Midleton. The Department of the Environment’s recent guidance document proposes that, in such areas, there should be a period of adjustment of between three and ten years. We believe this period should be as long as possible to allow businesses to adapt to the costs resulting from increased rates.”

“Furthermore, the funding formula for a General Municipal Allocation includes a perverse incentive for municipalities to increase the cost of car parking. This will only serve to harm retailers and other businesses located within town centres that do so much for local employment and local communities.”

“Local Government reform is very welcome. For many years it has been the business community that has shouldered the responsibility for funding local services through the rates system. Reform must ease this burden rather than add to it,” he concluded.

ENDS

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