Cost of dying to rise courtesy of VAT hike in burial plots

HOUSEHOLDERS in Cork county are facing increases in the cost of living – and dying – because of new VAT charges.

From July 1, Cork County Council will, on foot of an EU directive, have to increase the cost of grave plots and visits to recycling centres by 13.5%, while off-street parking will rise by 21%.

Meanwhile, further increases in other charges may be on the way as the Minister for the Environment John Gormley waits to sign off on the further introduction of 13.5% VAT on the use of local authority-run swimming pools, tennis courts and football pitches.

County manager Martin Riordan has decided he won’t impose a 13.5% increase in the council’s pay-by-weight bin charges this year, even though VAT on these charges is also supposed to be imposed on July 1.

He said the council would absorb the cost, estimated at €700,000 until the end of the year. At that stage he will look at the council’s overall budget before deciding whether or not to introduce the VAT from January 1 next.

The EU has also decided that the sale of affordable houses should also be subject to 13.5% VAT. However, in a report delivered to county councillors yesterday, Ger Power, the council’s head of finance, said there were still ongoing discussions about this at national level and it hadn’t yet been clarified if or when these charges will be introduced.

Councillor Noel McCarthy (Lab) said he was very worried the increases would hit already hard-pressed families. Cllr Frank O’Flynn (FF) said the increase in off-street parking would drive more shoppers away from towns.

Meanwhile, Cllr Noel O’Connor (FG) said many municipal-run swimming pools were already struggling and Mr Gormley should not impose any additional charges on people using them.

The county manager said the imposition of VAT would cause additional work for council staff who would have to administer VAT receipts.

He said he believed the private sector had lobbied the EU for VAT increases so it could put up its own charges.

Mr Riordan added, in his opinion, the council wasn’t in competition with privately owned swimming pools.