Cries of 'Pontius Pilate' as Cork County Council imposes rates hike for some businesses
Tim Lucey: 'Cork County Council is also a business.' Picture: Brian Lougheed
A tense meeting of Cork County Council saw commercial rates hiked by 3.5% for some businesses as the council sought to avoid cutting services.
Accusations of fiscal irresponsibility were thrown across the chamber as members debated the measures.
Shouts of ‘Pontius Pilate’ and allegations of fiscal irresponsibility were heard in Cork County Council’s chamber when Fine Gael refused to support a new budget due to a 3.5% commercial rate hike.
But Cork County Council's Budget 2023, which will raise rates by 3.5% only for businesses that pay more than €7,000 in rates, was voted through, 33 votes to 19.
Some 85% of businesses will not have to pay any rate increase.
Concerns were raised by all parties and multiple Independents about the financial pressure many businesses are already struggling under, with soaring energy costs and inflation generally threatening to close many small and medium-sized enterprises.
The Labour Party's James Kennedy accused Fine Gael councillors of taking a "Pontius Pilate approach” and washing their hands of responsibility for delivering a balanced budget when they refused to vote it through.
Clr John Paul O’Shea said that small business owners were dealing with energy cost hikes of 200% and as a party, Fine Gael was not convinced that a rise in rates was prudent at this time.
However, Cork County Council is also a business, its chief executive Tim Lucey said. It was also facing soaring costs and needed an increased budget if it was to maintain vital frontline services to an expanding population.
It was originally suggested that businesses paying €2,000 or less in rates would not have to pay the 3.5% increase due to a rate rebate.
But that threshold was increased from €2,000 to €7,000 after an amendment, proposed by Clr Alan Coleman, that businesses paying €7,000 in rates or less would not be subject to a rate increase, was accepted.
The rate increase of 3.5% will mean that a business paying €10,000 in rates will pay approximately €5 extra per week, or some €280 extra per year, Mr Lucey said, but this would fund many vital frontline services.
Business rates were raised by 3% this year, the first rate rise in 14 years and below the rate of inflation.
Budget 2023 will see record expenditure of €403.2m — an increase from €373.5m in 2022.
It envisions having a deficit of €4.1m, the same as 2022’s €4.1m.
Additional grant income of €1m has been allocated to the Homelessness programme bringing it to €5m; and €1m has been allocated for the Croí Cónaithe vacant and derelict housing renewal scheme.
A total of €400,000 was also allocated for Climate action and biodiversity, with the climate change impact a key consideration of any new investment being made and all new houses having a minimum BER rating of A2/A3.
The roads budget increased to reflect the increasing costs of fuel, electricity and materials to €94,789,303 — €2,048,428 increase from 2022.
The street cleaning budget increased to €3m and an increase in funding of burial ground maintenance and management brings that budget to €2.38m.
The 2023 budget for libraries also increased to €13.1m and increased funding to the maintenance of parks and open spaces brought it to €5.9m.
The capital investment programme will see €1.273bn invested across the county between 2023-2025, an increase of €275m (or 27%) over the 2021–2023 Capital Programme.
Housing is a key priority and comprises 45% of the 2023-2025 programme with a €172m increase over 2021–2023.
The total capital investment in housing from 2023–2025 is budgeted at €578.35m.
Social housing is estimated to receive €332.96m; funding in affordable housing is estimated at €86.34m; and voluntary housing is to get €164.95m; while other housing is budgeted at €4.10m.
The social housing investment of almost €333m will fund developments in places including Fermoy, Bantry, Carrigaline, Killavullen, Crosshaven, Coachford, Macroom, Ballydehob, and Kanturk.
Some €86m funding for affordable homes will fund schemes in places including Mallow, Kinsale, Midelton, Clonakilty, Fermoy and Carrigaline and will include cost rental homes.
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