Cork county to escape commercial rates hike for five years

There will be no increase in commercial rates in Cork county until 2020 but some businesses, in former town council-controlled centres, will gradually have to pay more over the next five years to bring them in line with county rates.

For years, smaller municipal statutory bodies approved lower rates than those in areas managed by Cork County Council.

However, since town council’s were abolished last year, Cork county is being run by a single rates department.

County council members yesterday decided to harmonise the commercial rates structure.

The council’s chief executive, Tim Lucey, said the five-year rates harmonisation programme will commence in 2016 across nine former town council areas.

“This certainty on commercial rates in terms of costs to businesses is not likely to be matched by any other service or utility provider in the country for such an extended period of time,” Mr Lucey said.

“This does of course present a position whereby future increases in income from commercial rates is solely based on positive buoyancy being achieved from economic growth and continued progress being made in increasing collection levels.”

Roisin O’Sullivan, the council’s acting head of finance, said County Hall expects to yield €126.2m in rates next year.

The council is to allocate €1.08m to its Economic Development Fund, which aids business start-ups in particular.

Mr Lucey said the local authority would spend €295m in 2016, up €6m on this year, with about €158m coming from ratepayers and householders paying the Local Property Tax.

Mr Lucey said local authority financing has radically changed in recent years. “Irish Water has assumed responsibility for the delivery and funding of water services; the Non-Principal Private Residence tax has been discontinued and the Local Property Tax is now in place.”

He said the council’s Local Property Tax income for 2016 would amount to €29,878,992 — a large proportion of which would be spent funding housing and road projects.

Mr Lucey said there had been “a considerable impact” on service delivery by major staff cuts in recent years.

Party leaders generally welcomed the budget but had some concerns.

Cllr Seamus McGrath (FF) said the council was falling down on maintaining road markings and tackling litter. He demanded the Government gave more than the current 80% of the Local Property Tax to councils.

Cllr Kevin Murphy (FG) said the budget “was very sound overall”, but money should be diverted from the arts grants to other more worthy programmes such as house adaptation grants for the disabled and elderly.

Cllr Declan Hurley, for the Independents, said the council was “now turning the corner” after years of cutbacks.

Cllr Des O’Grady (SF) proposed a number of amendments. He wants some cuts to allowances for councillors and a reduction in certain programmes with that money being transferred to housing maintenance, homeless services, and housing adaptation grants.

His proposed amendments were defeated and the budget was adopted by 42 votes to 8.