Spending on housing and roads to be slashed

SPENDING on roads and housing will be slashed in Cork city next year after a €11 million cut in the city council’s annual budget.

Commercial rates — which account for 38% of the council’s income — will remain unchanged for the fourth year in a row, non-commercial water charges will remain at €2.35 per cubic metre, housing rents will not increase, and there will be no increase in parking charges.

The towing and clamping contract is not being renewed, and funding to visitor centres, events, community and arts grants is set to be cut by 10%.

Some €2.7m has been set aside for the Disabled Persons Grants scheme for privately-owned houses, but funding for capital works or extensions in the council’s own housing stock has been slashed by 50% — from €800,000 to €400,000.

However, the disposal earlier this year of the council’s loss-making refuse service has resulted in the establishment of a new €750,000 community fund, which will be distributed to groups over the next three years.

The figures are contained in the city’s draft 2012 budget which will be voted on next Monday night.

City manager Tim Lucey said framing the budget has been “an extremely difficult task” given the state of the national finances.

He said many of the council’s income streams are under pressure while demand for services has increased.

“There is a clear requirement to continue to reduce and restrict expenditure in all areas and across all elements while endeavouring to minimise the impact on the level of service to our citizens and ratepayers,” he said.

The draft budget shows that the city will spend €167m next year — down from €196m this year.

The total spend on its core areas will be down €11m or 7% on the 2011 budget, with housing and roads being hit hard.

Mr Lucey said the reduced 2012 housing budget means massive reductions in planned maintenance works introduced last August will continue, and that funding will only cover:

* a full response to emergency and urgent repairs to the council’s housing stock;

* a limited programme of planned window and doors replacement;

* and a full response to emergency and urgent electrical repairs, and to central heating maintenance and bi-annual boiler services;

Funding cuts will also hit spending on roads, with the focus switching from improvements to maintenance.

The 2012 roads budget does not include specific funds for estate roads’ resurfacing, traffic calming, laneway closure or new public lighting.

But any commitments made this year will be honoured, Mr Lucey said.

The draft budget also shows that the council’s 2012 grant from Local Government Fund will be just over €17m — down almost 9% on this year.

Councillors are due to vote on the budget at next Monday night’s council meeting.