Cash-strapped council suspends projects after €20m loan refused

THE finances of Ireland’s largest local authority have been thrown into further turmoil after the Department of the Environment refused it permission to seek a €20 million loan.

Cork County Council members heard yesterday that their worsening financial situation had taken yet another knock, leading to the suspension of all planned projects that were to be funded by development contributions.

The news comes less than a fortnight after the council was forced to suspend more than €5m worth of approved grants to elderly and disabled people for home improvements, after it emerged the Government had not provided sufficient funds to administer the scheme.