City rates and refuse charges set to increase

RATES, refuse and water charges may have to increase in Cork next year if Central Government again cuts its funding to Ireland’s largest local authority.

The warning came from county manager Martin Riordan who said the council would be just about able to balance its book for the remainder of this year, but 2010 could be a different proposition.

Mr Riordan said prudent housekeeping had enabled the council keep its head above water, despite major cuts in road funding and the Local Government Grant it received this year.

He said the local authority needed certainty over future funding from Central Government and not further cuts like it had already endured. “Central Government has left us down in 2009,” Mr Riordan said.

The council froze its rates this year. It was one of only 10 of the 32 local authorities in the country to do so.

The county manager said he would like to keep that freeze in place for the next two years, because he understands how some businesses are struggling in the current economic climate.

But that may be impossible if funding is cut even further by the Government, he indicated.

“Our rate base is under serious pressure. Hotels are in serious difficulty, so are bars, restaurants, retail and the hospitality sector in general,” Mr Riordan said.

It is estimated business closure will cost the council €7 million in lost rates this year.

Mr Riordan added that the council had restructured its refuse service to seek savings, adding productivity.

He said he wouldn’t like to increase pay-by-weight refuse charges for his 42,000 customers, but may have no option because it’s possible the Government may soon introduce 13% VAT on these charges.

The council will also have to pre-treat waste going into the Bottlehill landfill, which will open by next summer. That will also cost money.

Mr Riordan said the waste collection business can’t be subsidised by taxpayers and it needs to pay for itself.

There has also been a major fall-off in development charges (from €43m in 2007 to €10m this year) and a collapse in income from planning charges. The charges were used to pay for new water and sewerage schemes. Without such income the council will be severely restricted in completing new projects.

“The system [of funding water schemes] can’t work the way it is. We will have to come up with a different way of doing it,” Mr Riordan said.

He said savings had been made with the axing of 250 seasonable employees, 200 temporary staff and through 30 early retirements and 15 career breaks.

“We have also cut nearly €5m from overtime payment. We should get recognition at Government level for what we have done and we shouldn’t have to endure even more cuts.”