Council agree on two per cent reduction on rates

Council agree on two per cent reduction on rates


Anton McNulty

MAYO County Council agreed last week to strike a two per cent reduction in the rate charged on commercial and industrial properties after councillors argued that businesses had to be helped to protect jobs.
In the draft budget for 2010 which was circulated to councillors for consideration and approval before the Christmas, County Manager Joe Beirne asked for no change in the current rate and for it to remain at €70.16 in the euro.
The total expenditure for the 2010 budget is €135 million and Mr Beirne stressed that 2010 will be a difficult year in the context of the current economic climate where pay cuts and further expenditure cuts have been imposed. He had calculated that the income from rates would be €13,795,616.
However councillors argued that businesses were looking to the council to help them get through the current economic climate and they had a responsibility to help them. Fine Gael whip, Cllr Joe Mellett proposed that they cut the current rate by two per cent and this was unanimously supported by all the councillors. The new rate charge will now be €68.78 in the euro.
“This is a difficult time for all services suffering in the down turn but especially for the 2,000 medium and small sized companies and the 200 larger companies who provide jobs and are doing their best not to close. They are looking to us to make decisions which will see them either stay open or close down. It is up to us to demonstrate to the rate payers that we are fully behind them,” said Cllr Mellett.
He explained that there were also a number of other projects which they would like added to the expenditure which included €62,000 for a Community Event Fund, €100,000 for a contingency fund to deal with natural disasters and €5,000 as a contribution to the people of Haiti.
Cllr Mellett said this would add an extra €421,912 onto the budget and said this would be saved by reducing the members salary by €37,612, reducing the expenses for members attending conferences by €42,300, reducing the bank draft by €50,000, reducing loan charges by €100,000, decreasing pensions by €140,000 and by bringing in €52,000 under the Non Principal Private Residence tax.
The Fianna FΡil whip, Cllr MicheΡl McNamara said their party had met on a number of occasions to discuss the budget and were happy with the two per cent reduction in the current rate as a way of supporting businesses.
“In the current economic circumstances we look at reducing costs for businesses and I would put a plea out to landlords to look at reducing the cost of rents they are currently charging,” he said.
The debate on the budget lasted for over 12 hours over two days with all aspects of the budget accessed which included housing, roads and water services. County Manager, Joe Beirne thanked the councillors for their time in debating the budget and for striking a rate, even if they would have referred a zero per cent cut.
Mr Peter Duggan, the Finance Director with Mayo County Council reiterated that while it will be a difficult year, there had been no increase in rents or water charges and he believed it was a fair budget. He also thanked all the staff who helped prepare the budget.
Cllr Mellett thanked Mr Beirne and Mr Duggan for their assistance and he in turn was thanked by Independent councillor Gerry Ginty for taking a ‘sensible approach’ and added it would not go ‘unnoticed’.
Fine Gael councillor Peter Flynn pointed out that hotels were one of the biggest employers in the county but were paying between €50,000 and €100,000 in annual rates. He said this was costing them up to 20 bedrooms a week to cover the costs and asked if a deal could be done with the Valuation Office to reduce the costs. Mr Duggan said he would be willing to contact them but ‘would not give much hope’ of a deal being done.