Council passes annual budget

GOOD NEWS FOR FERMOY AND MALLOW TRADERS AS RATES INCREASE DEFERRED

TRADERS in Fermoy, Mallow and other Cork towns formerly administered by town councils have been given a welcome boost after it emerged they would not be saddled with a major hike in commercial rates.

Speaking at Cork County Council’s annual budget meeting the authority’s chief executive, Tim Lucey, moved to calm the fears of business owners who had feared an immediate spike in their rates could put them out of business.

For years town council’s had the power to strike their own commercial rate, which in towns such as Fermoy and Mallow was considerably lower than the rate charged in areas managed by Cork County Council.

The abolition of town councils saw the establishment of single rates department catering for the entire country – raising the prospect of a sudden and immediate hike in payments for those businesses on the lower rate bandings to bring them in line with the rest of the county.

However, a proposal by Mr Lucey to harmonise rates across the county between 2016 and 2020 was adopted by the council at its budget meeting on Monday.

While it will mean traders in former town council areas will face an incremental rise in their rates over the next five-years, they will not have to pay the full county rate until 2020.

“This certainty on commercial rates in terms of costs to businesses is not likely to be matched by any other service or utility provider in the country for such and extended period of time,” said Mr Lucey.

“The rates relief scheme will provide some assistance to the many businesses which support and generate job creation and who are critical in particular to the vitality of our towns, villages and rural communities,” he said.

Fermoy based county councillor Frank O’Flynn described the commercial rates measure as “the best bit of new ever in Cork County Council.”

The budget also saw the county rate fixed to its current level of €74.75 to 2020.

The budget will see spending by the local authority increase to €295.3 million in 2016 compared to €289.2 million in 2015. Mr Lucey said that around €158 million would come from ratepayers and householders paying the Local Property Tax.

The Sinn Fein leader in the house, Cllr Des O’Grady, proposed a number of amendments including cuts to councillors allowances and other programmes, with the money saved transferred to housing maintenance, homeless services and housing adaptation grants.

His proposals were defeated and the budget passed by 42 votes to eight.

Cllr Kevin Murphy (FG) described the budget as “very sound overall” although he said he felt money should have been diverted from arts grants to other programmes such as housing adaptation grants for the elderly.

Cllr Seamus McGrath (FF) demanded that the government give more of the current 80% of Local Property Tax to councils, while Cllr Declan Hurley (Ind) said the budget was proof the council was “turning the corner” after years of cutbacks.