Businesses ‘under threat’ from Government policies
Chief executive Conor Healy also called for new rating laws — the laws which govern how commercial rates are set — to help businesses deal with the economic crisis.
He was reacting after Cork City Council agreed its 2011 budget and froze commercial rates for the third year in a row.
Mr Healy welcomed that move, but said it was disappointing that significant savings made by the council could not be passed on.
It emerged during the city’s budget meeting that some 201 staff have left the organisation and not been replaced, resulting in a €10m reduction in the payroll.
But city manager Tim Lucey said the council could not pass on these, and other savings, because the city’s other main income streams have been reduced.
The Local Government Fund, one of the city’s biggest sources of income, has been cut by 8.3% next year to just under €23m.
The income from 2011 rates will now account for almost a third of the council’s income.
Both Cork city and county councils have ringfenced 1% of rates income, equivalent to over €1.5m, to stimulate economic development.
The county council has also reduced water delivery charges by 3%, and cut development contribution charges by up to 42% from January 1 to stimulate job creation and development.
Mr Healy welcomed those moves, but warned that current government policies are jeopardising local government and placing an unfair burden on the business community.
He said the Chamber has been lobbying for some time for such a stimulus package.
“It is our hope that the percentage to be ringfenced can be increased in the coming years,” he said.
“It is however extremely disappointing that the councils were not in a position to pass on the benefits of their reductions in expenditure and enhanced efficiencies through a reduction in commercial rates to the business community.
“It is important to state that this is largely as a result of incessant reductions in the Local Government Fund grant from central government.”
The Cork Business Association also welcomed the freezing of rates. But spokesman Donal Healy called on city officials to consider introducing a refuse waiver scheme for businesses, similar to the scheme already in place for households.
Sinn Féin said people can already see the effects of the 201 job losses from the city council.
“The consequences can be seen in the slow pace of salting and gritting across the city in the past week which has left some people trapped inside their homes,” Cllr Jonathan O’Brien said.
