‘Significant’ costs to merge councils

A BID to save money by merging two local authorities in Tipperary will demand significant costs upfront, a report for the Environment Minister has revealed.

The merger of South and North Tipperary County Councils was announced earlier this year.

However, a preliminary report on the move has revealed that “significant convergence costs” will be needed for the merger.

Phil Hogan’s department announced the move in July following an earlier measure to join two local authorities in Limerick.

The department said that “efficiencies and the removal of duplication, with integration of administrations and service delivery” would help save funds as part of overall changes to local government.

However, a progress report for Mr Hogan, which was released yesterday, stated that “significant convergence costs will be incurred in the interim”.

“Upfront costs associated with the integration as well as financing options will be identified.”

The report flags long-term savings for the running of North Tipperary, with commercial rates there expected to be reduced to the same level as in the south of the county.

The merger is expected to be completed in mid-2014 and will cater for a total joint population of 159,000.

Nenagh and Clonmel will remain the two key urban and business areas under the plan.

However, the report noted that the number of electoral areas would be reduced. A review on these will commence next year.

The new single authority will also incorporate six town councils and one borough council.

Mr Hogan has said that both local authorities share common features in terms of administration and broadly similar levels of services.

He has also said he intends to initiate a review to consider whether the creation of a unified authority in Waterford would be desirable.