COUNCILLORS VOTE FOR A FIVE PER CENT RISE IN PROPERTY TAX
WEXFORD County Council has voted to increase local property tax (LPT) of almost five per cent on the 2017 base rate.
The decision was carried by a vote of 21 to 9.
County Hall says that for the majority of households, the increase will be between nine cents and 30 cents a week (€4.50 and €15.75 a year), compared to the 2017 charge, and will bring in some €600,000 to be used as collateral to fund future development.
The increase represents a 10 per cent rise on the base rate set in 2012, when property tax was first introduced, but the majority of councillors believe it is necessary to underpin and sustain a number of ambitious flagship projects that will create jobs and attract inward investment.
Voting against the increase were Joe Sullivan (FF), Michael Whelan (FF), Lisa McDonald (FF), Anthony Connick (Independent), Deirdre Wadding (PBP) and four Sinn Fein councillors Oisin O’Connell, Johnny Mythen, Anthony Kelly and Mick Roche.
SF’s Fionntán Ó Súlleabháinwas not present and neither was Independent Davy Hynes. Cllr John O’Rourke (Independent) was present at the meeting, but did not stay for the vote.
Chief Executive Tom Enright set out the overall economic context and described the challenges facing the council in its efforts to increase job opportunities and attract investment to the county.
Mr Enright pointed to the shortage of property solutions available to facilitate local company expansion or to attract new businesses to Wexford.
He also stated that the absence of high quality jobs in Wexford meant that a large proportion of young people do not return to County Wexford after completing their third level education due to the lack of job opportunities in their home county.
‘We can no longer wait for inward employment opportunities to come to Wexford – we must seek them out by investing in an economic development programme that will attract investors and jobs to our county,’ said Mr Enright.
‘Wexford County Council must develop these property solutions ourselves so that when potential investors visit County Wexford, they find a range of state-of-the-art, ready for occupation, affordable and well-located properties, allowing these companies to make an immediate decision.’
Council chairman Cllr John Hegarty said the decision to increase the LPT was a difficult one and was based on the need to strike a balance between financial impact on property owners, the need to fund job creation opportunities and the overall capacity of the council to deliver our wide range of public services.
‘As a county, we are deficient in our economic development infrastructure and today’s decision is a strong message from the Council that not only do we recognise this deficiency, but we are absolutely committed in our duty as elected members to address it,’ he said.
Prior to the vote, officials outlined a wish-list of projects that would benefit from a boost provided by the property tax increase, which will bring in an additional €600,000.
A substantial investment will be put towards major projects such as the ambitious Trinity Wharf project in Wexford town which should lead to the creation of hundreds of wellpaid jobs.
Projects listed by Director of Services Tony Larkin in a closed-door sessions prior to the vote included:
Gorey District - M11 Business Campus, Gorey (Cost: €100,000 per annum); The Hatch Lab (Cost; €180,000) Gorey Market House Redevelopment (Cost: Estimated at €2 million); Gorey Town Park Redevelopment (Cost: €1.5 million).
New Ross - Transport and Logistics Hub at Butlersland; Advanced Technology Buildings (Cost: Estmated at €100,000 a year); New Ross Enterprise Town Centre Development; Hook Centre: Five Greenways are under development with a further one identified; JFK Dunbrody Development; New Ross Port Company.
Enniscorthy - Business and Technology Park (Cost €2 million); Flood Scheme (due for handover in July 2020 with no cost to Wexford County Council); Templeshannon Urban Development; Town Centre Tourism Project; Vinegar Hill Development;
Wexford: Wexford Quays Redevelopment, from Crescent Quay to North Station (Costs: €1.5 million); Kilmore Quay Relief Road and Marine Sector Business Park (Costs estimated at more than €1 million); Greenways; Min Ryan Public Park (Costs €2.5 million) and Forth Mountain Activity Centre (€500,000 infrastucture).
The project costs are included where known.
Fine Gael Cllr Frank Staples said the money raised by the increase will be put towards a huge amount of work being planned for town and county.
‘It will be hard for some people to swallow, but when they see what we are going to achieve, they will see how progressive the council is being,’ he told this newspaper.
Former borough engineer Eddie Taaffe has been brought in as a director of services to oversee the projects.
Labour Councillor George Lawlor said he had voted for the LPT increase ‘ because it gives us as councillors and officials the flexibility to invest in Wexford’s future and the extra €600,000 it will raise gives us the ability to raise €10 million to put into projects that will enhance Wexford.
‘We’ve already seen €1 billion invested by the last governments and we need to match that with ambitious projects,’ he said, criticisng those members who voted against the proposed increase.
Fianna Fáil’s Cllr Malcolm Byrne, whose party colleagues voted against the increase, said the decision to vote in favour was a tough one, but the right decision to make.
‘I voted reluctantly in favour on the basis that the money is ring-fenced for a series of projects,’ he said.
‘If it had been going towards the overall funding of the council I wouldn’t have been in favour.’
He said Gorey and North Wexford had much to gain from the ambitious development plan outlined at the meeting.
‘One that was not included was the development of Courtown Harbour but that is part of it. The money is going to built up as collateral to develop these projects that will be for our social and economic development. There may not be a positive reaction, no one likes paying extra taxes, but the investment will result in extra jobs and facilities.’
‘Some of those who voted NINE councillors voted again the LPT increase: Four Sinn Féin members, one from People Before Profit, one Independent and three from Fianna Fáil.
Fianna Fáil’s Cllr Lisa McDonald said the increase in LPT was too much in the current economic climate when inflation and interest rates were both low.
‘House prices are the only place where inflation exists at the moment and here we have the local council adding to it,’ she said.
‘LPT is based on valuations of homes that have not been updated since 2013 when house prices were at their lowest. Another valuation is due in 2019 and many will see their liabilities rise as a result of this,’ she said, echoing comments made at last week’s ‘in-committee’ meeting of Wexford County Council. Cllr McDonald said the increase is being against the increase will be the first to appear in the photographs when the new facilities are being opened,’ he said.
Wexford Mayor, Fine Gael Cllr Jim Moore, said there was big challenge in it as with any form of increase any form of taxation.
‘ There’s always a kick-back or reluctance to pay more, but what we have is a plan for sustainable development for all the four districts and that gives an opportunity for job generation and that’s a very substantial part of it.
‘We’re talking about budgeting in the long term and this is a very ambitious plan to create sought to fund loan repayments on special projects, which ‘will mean that the increase will be permanent’.
She also questioned the investment logic of some of these projects when core areas such as social housing, roads, footpaths and other infrastructure require immediate attention.
The councillor also critised the budgetary strategy that was being pursued and said councillors were being asked to ‘ buy a pig in a poke’ by the executive which sought increases in commercial rates as well as Local Property Tax without producing an expenditure budget.
SF’s Fionntán Ó Súlleabháin said the party’s councillors had made a commitment to the people of Wexford that they wouldn’t support an increase ‘in austerity taxes such as the family Home Tax’.
‘We believe in keeping those commitments. some certainty and we need to see it run its course...we see it as an opportunity,’ said Cllr Moore.
Asked about how the council could justify a double figure increase in LPT when most of the people living and working in the county have gone without pay rises for at least five years, Cllr Moore said Wexford was one of only three councils which invested in its future by increasing LPT last year and it would see the dividends of this.
‘We can’t afford to miss out when it comes to investment in future jobs. The grave danger is that people do not see or recognise what we are doing and we, as a council, are doing a lot.’ Ordinary people have already paid enough. Last year we warned that these taxes would go only one way - upwards. We’ve been proven correct,’ he told this newspaper.
‘We do appreciate the bind that the executive of the council are in with the cutting of the Local Government Fund.
‘ The portrayal of the 10 per cent increase in the LPT by some politicians as a panacea for the county’s economic problems and trumpeted by some as the source of funding for our capital projects is simply spin,’ said Cllr O Sulleabhain.
‘ The figures clearly show that the LPT funds just a small fraction of these capital costs. We proposed alternative routes of funding for projects. However, voting for an increase to the LPT validates this entire system, and insulates central government from its responsibilities,’ he said.