Commercial rates go up 3.9% in Cork county

COMMERCIAL rates will be increased by 3.9% in Co Cork next year, netting the local authority an estimated €84.2 million.

Ger Power, the county council’s head of finance, told councillors at a special budget meeting yesterday that commercial rates represented 23% of all its income.

He pointed out that the Celtic Tiger economy had seen a 35.7% increase in the commercial rate take since 1997. “We have a very strong commercial rate base with growth in new businesses,” he said.

The council will have a €620 million budget for next year, out of which it will have to fund a €121.5m payroll.

Collection charge for refuse will rise by 4% to €125, while the charge for waste disposed of will go up by 6% to 50c per kilo.

Mr Power said that despite speculation coming from private waste operators, the council wouldn’t be introducing charges in 2007 for collecting recyclables.

Water charges for the non-domestic sector will rise by 6% next year.

Cllrs Tom Sheahan (FG) and Alan Coleman (FF), leaders of their respective parties on the council, were both critical of the delay by the Department of Environment in announcing next year’s Rate Support Grant.

Last year, the council had to revise its budget downwards, trimming some projects, because it over-estimated the grant it would receive.

“It’s a very bad way to manage a business. It’s unfair,” Mr Sheahan said.

He said he welcomed the small increase in commercial rates, but said it was vital to keep them low to encourage small business.

“An increase of 6% in water charges will be of concern to small businesses,” Mr Coleman said.

Labour’s leader on the council, Cllr Paula Desmond, launched an attack on the Government for failing to provide the council with adequate financial support.

She said an embargo on recruitment of council staff, imposed by the Government, had left them overworked at a time when the population of the county had increased by 40,000.

She said there were only small increases in the council’s budget for housing, roads and recreation/amenity programmes.

“People are crying out for houses that the council can’t provide. We have 14% of national road network and nothing like 14% of the funding. We’re collecting €75.84m in motor tax which is sent to Government, and we’re getting a fraction of that back,” Ms Desmond said.

Sinn Féin’s Cllr Martin Hallinan said he was especially concerned about lack of adequate local authority housing.

“There are 911 lone parents on housing waiting list in Co Cork and more needs to be done for them,” he said.

The budget was passed by 22 votes to five. Fianna Fáil and Fine Gael supported it, while Labour and Sinn Féin voted against.