Council warns services will be cut due to house tax shortfall

The refusal by almost half the country’s homeowners to pay the €100 household charge could lead to cutbacks on road maintenance and library services in one of Ireland’s largest local authorities.

Cork County Council confirmed yesterday it may also be forced to cut arts grants and halt small construction schemes.

It is estimated the council could have its local government fund cut by up to €4m as a result of the planned shortfall in household charges.

The Government was expecting a €160m windfall but has received about half that amount. The money was reportedly earmarked for the local government fund, which props up services for city and county councils.

If, as expected, the Government reduces the fund due to the refusal by nearly half the population to pay the household charge, Cork County Council will be forced to make some stark choices.

County manager Martin Riordan said the local authority cannot reduce its staff payroll any further and would have to cut back elsewhere, with reductions in some of the services it offers.

He made his comments yesterday after a meeting in County Hall during which Fianna Fáil members attacked the Government for the “botched scheme”.

Cllr Seamus McGrath (FF) criticised the Government for making local authorities suffer for the debacle and asked the manager what the financial implication would be for the council’s services.

His party colleague Cllr Donal O’Rourke predicted the shortfall would lead to a serious deterioration in rural roads.

Cllr Michael Hegarty (FG) replied: “The Soldiers of Destiny are now like knights in shining armour. The public has been misled by Fianna Fáil for 15 years. You supported the household charge and now you’re trying to ride two horses at the one time.”

Cllr Veronica Neville (FG) said she was disappointed with the number of people who had refused to pay the charge. She said she did her own straw poll among friends on a recent visit to Dublin and found that most people were not prepared to pay it.

“Dublin disobedience will cost the three West Cork peninsulas when it comes to maintaining their roads,” Cllr Dermot Sheehan (FG) claimed.

Mr Riordan said shortfall in collecting the charge would almost certainly have an effect on council funding from central government.

“We need to encourage people to pay. We will need the money by the end of the year,” Mr Riordan said.

He said that senior council staff were reviewing their finances on a quarterly basis and promised he would inform councillors immediately of shortfalls.

Mr Riordan added that there could be less of an income from rates this year and even water charges, which would also mean the council would have less money maintaining its services.