Chamber calls for councils to merge

Cork Chamber has called for Cork City and Cork County Councils to be merged.

It followed the city council’s vote last night not to reduce commercial rates for 2014 just days after the county council also said it was not in a position to reduce rates.

Chamber CEO Conor Healy said revenue from commercial rates accounts for up to 40% of Cork City Council’s income, and 32% of Cork County Council’s total income which places an unjustified burden on businesses to fund the local authorities. “The maintenance of the current rate is even more frustrating for Cork’s businesses given last week’s announcement of a 16% rates decrease in Limerick for 2014, made possible by direct government support to facilitate the merger of Limerick city and county councils,” he said.

A merger of both of Cork’s authorities could deliver several benefits, he said. In particular, significant savings could arise by eliminating the duplication of resources by combining many aspects of local authority activity which in turn could lead to a reduction in rates for business located in Cork, he said.

He urged Environment Minister Phil Hogan to ensure the single rates payment is restructured within the forthcoming Local Government Bill.