COUNCIL FREEZE PROPERTY TAX RATE
LOCAL PROPERTY TAX REMAINS UNCHANGED, DESPITE CALLS FOR CUTS
HOMEOWNERS in Louth will pay the same property tax in 2017 as they did this year after county councillors voted to keep the rate unchanged, following a 1.5% cut in 2016.
The debate, dubbed ‘ the annual Punch and Judy Show’ by Green Party councillor Mark Dearey, heard proposals from Fianna Fail’s Cllr. Tommy Byrne to cut the rate of LPT by 1.5%, while Sinn Fein’s Cllr. Alan Cassidy proposed that it be slashed by the maximum 15%. But it was independent councillor Kevin Callan’s proposal to leave the rate unchanged that was accepted, after a vote.
Council boss Joan Martin warned that a 15% reduction would ‘ take €1.4million out of the budget and everything would have to be looked at’, adding the planned recruitment of staff for the council, the first in ‘ ten to 12 years’, would not take place if there was a cut.
Some councillors called for better management of council resources, including better rate collection, after it was revealed Louth is languishing at the bottom of the league table for debt, with a massive €17 million still outstanding.
HOUSEHOLDERS in Louth will pay the same local property tax in the coming year, after councillors voted in favour of retaining the status quo. Proposals to cut the tax by 15% or 1.5% were rejected after officials warned that cutting the tax could impact on Louth County Council’s ability to recruit staff and provide services,
CEO Ms Joan Martin told Monday’s meeting that there had been no submissions on the issue following a public consultation period.
It was up to the councillors to leave the tax unchanged or to raise or lower it by an amount of up to 15%, she informed them.
She recalled that they had voted to reduce the tax by 1.5% last year and if the councillors decided to leave it as it is, they would be €140,000 better off, which would give them the chance to decide how to spent it, suggesting class 3 roads and the possibility of 50/50 schemes.
There were, she said, very few areas for the council to raise money other than the local property tax, the only other ones being parking, rents and rates,
Cllr Kevin Callan proposed that there would be no change, noting they had all received communications from people about class 3 roads.
A plea for the council to look at other ways of saving money, such as tackling the open spaces in Muirhevnamor which lead to people vacating houses, was made by Cllr Kevin Meenan. He called for ‘a brain storming session’ so that they could ‘ look outside the box’ and give people the break they deserve.
The local property tax was branded as ‘ totally unfair’ by Cllr Tommy Byrne, who said that people were being fleeced and suggested they cut it by 1.5% again this year.
Cllr Emma Coffey asked what was the reality of recovering the historical debt of the €17million owed in rates.
Ms Martin replied that while the outstanding rates were a ‘ huge debt’ on the council, their situation wouldn’t improve if they collected it tomorrow as the money has already been spent. Louth, she pointed out, was languishing at the bottom of the league for rate collection, along with Donegal, partly because of having large urban areas, but also because some people can’t pay, and there were others who won’t pay. ‘A lot of people don’t want to pay anything to the establishment, whether it’s us or the government,’
She added that they were substantially increased the number of staff working in the area of debt collection and were seeing a welcome and steady improvement in collection rates.
Cllr Frank Godfrey said there were 15,000 unemployed in the county and they had the power to reduce the tax by 15% which would help them.
Ms Martin warned that if members passed a 15% reduction, the council would have to cut services and wouldn’t be able to recruit staff for the first time in 10 or 12 years.
‘If you were to reduce the LPT I would have to consider whether I could employ clerical officers or replace staff,’ she said. She also pointed out that they were now operating on a budget of €95/€96million compared to excess of €150million before the recession.
Cllr Edel Corrigan claimed the council was missing out on opportunities to save money, citing problems with illegal dumping off the Ecco Road in Dundalk. ‘I don’t think the public should miss out any more by our misspending,’
The CEO took exception to that remark, retorting that littering only occurs because citizens throw it out and the council would never have to clear up if every citizen disposed of their litter and domestic waste.
Cllr Mark Dearey stated that they had been thrown into this ‘annual Punch and Judy’ situation by the LPT legislation and his commitment was to maintaining services.
Cllr Alan Cassidy proposed that they reduce the LPT by the largest amount possible.
Cllr Jim Tennety said that if they cut the rate by 15%, it was those who have wealth that would benefit the most. He noted that the council was now in a recruitment phase and would also have to address the issue of pay increases for their low paid workers next year.
A 15% reduction would take €1.4million out of the budget and everything would have to be looked at, said Ms Martin.
A proposal by Cllr T Byrne to reduce the LPT by 1.5% was rejected as was Cllr Cassidy’s proposal to cut it by the maximum of 15%, while Cllr Callan’s proposal that it remain the same was carried.