Cork County Council signals first hike in rates for 5 years

The first increase in rates in Co Cork in five years could be on the cards.

Following a lengthy debate in County Hall on the potential fallout from the Government’s decision to re-evaluate rates throughout the country, county manager Martin Riordan signalled that the cash-strapped council might no longer be able to stave off increases.

Over the past five years Mr Riordan has resisted a hike in rates, saying he was well aware businesses were suffering from the downturn in the economy. But it appears his views may now have changed somewhat.

“We thought 80% of the property tax [collected in Co Cork] would be ringfenced for use by this council. But this now doesn’t seem to be the case for 2014,” Mr Riordan said.

He added that the Local Government Fund — which the Government provides as grant aid for councils — had been significantly reduced in recent years and another reduction was again likely in 2014.

Because of these factors, he added: “We will be doing very well if we bring in a budget [for next year] with no rate increase.”

Council officials are currently preparing next year’s budget, but details won’t become available to councillors until their annual budget meeting in the middle of December.

The Government is currently carrying out re-evaluation of rates in Dublin City and Waterford and these changes will be published in December.

A similar exercise is under way in Limerick, the results of which will become known by the end of 2014.

However, it’s unclear when re-evaluations will be undertaken in Cork.

A number of councillors said that high rates were responsible for closing businesses.

But the county manager refuted this.

He said that around two-thirds of all ratepayers in the county paid less than €3,000 per year.

“Rates are generally the last factor when it comes to closing a business. We haven’t increased rates in the last five years and we reduced [commercial] water charges three years ago. In the meantime utility companies have been increasing their charges,” Mr Riordan said.

He also added that the council dealt very sympathetically with businesspeople who were genuinely finding it difficult to pay their rates and his staff would always try to make life easier for them.

He said the council “don’t charge penalties or interest either” if people fall behind with their payments.

Meanwhile, the abolition of the county’s town councils — which in general impose smaller charges than the county council — will also lead to a rise in rates from next summer in towns like Skibbereen, Bandon, Clonakilty, Bantry, Youghal, Cobh, Midleton, Kinsale, Fermoy and Mallow.

Cllr Donal O’Rourke (FF) said the Government should take cognisance of the fact that many businesses in Cork towns which had suffered flooding and didn’t have insurance were finding it more difficult to cope and should have their rates bills reduced.