Cork Chamber Calls for Merger of Cork City and Cork County Councils

17th December 2013

Cork Chamber has today called for the merger of Cork City and Cork County Councils as they believe that now is the appropriate time to implement a unitary authority for the Cork region, in light of yet another year where both Councils have announced in recent days their inability to reduce commercial rates for 2014.

According to Mr. Conor Healy, CEO of Cork Chamber, “It is now necessary to move forward with a merger as there are many potential benefits to be accrued. In particular, significant savings could arise by eliminating the duplication of resources by combining many aspects of local authority activity which in turn could lead to a reduction in rates for business located in Cork. It is important that Cork speaks with one voice in order to maximise economic investment and having a single local authority for the entire County could be the catalyst for a more streamlined approach to economic development”.

Mr. Healy went on to further express his disappointment at the decision by Cork City and Cork County Council not to reduce commercial rates for 2014. He stated that “currently, revenue from commercial rates account for up to 40% of Cork City Council and 32% of the Cork County Council’s total income which places an unjustified burden on businesses to fund the Local Authorities. The maintenance of the current rate is even more frustrating for Cork’s businesses given last week’s announcement of a 16% rates decrease in Limerick for 2014, made possible by direct Government support to facilitate the merger of Limerick City and County Councils ”.

“Cork Chamber continues to be very concerned about the use of the Local Property Tax for 2014 and urges Government to implement their commitment that 80% of the income raised locally through the property tax is ring fenced for local spending, as promised by Minister Hogan in March 2013. Local government needs to be given its own source of income, if we are to create strong local government models, which are properly resourced to foster regional economic development”, Mr. Healy continued.

Mr. Healy concluded by calling on Minister Phil Hogan T.D. to ensure that the current Single Rates Payment is restructured within the forthcoming Local Government Bill. He stated that “this is critical to create a more equitable system where rates are varied and reflect appropriate valuations”. He said that “the current rates system is antiquated and inflexible in its approach and it is crucial that Cork City and Cork County Council has structures in place that encourages enterprise to set up in the region and create a fairer commercial rates system, reducing the significant burden currently placed on businesses to meet the rate demands”.

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