by Liam Porter, Inishowen Independent
MEMBERS of Donegal County Council will meet tomorrow
for their annual budget meeting but already there
are signs that the meeting may not go as smoothly as
officials might hope.
The Draft Revenue Budget 2008 published this week
shows that County Manager Michael McLoone will be
seeking a 5% increase in commercial rates in the
coming year but could face strong opposition from
councillors.
The council are also proposing a 26% increase in
commercial water rates and while the county manager
admits this represents a significant burden on the
business sector, he said the council has no option
under EU directives but to implement full cost
recovery from non domestic users.
Mr. McLoone is seeking to raise €178,944,900 in the
coming year an increase of €11.592 million on last
year’s budget. He has also outlined that the total
planned expenditure by the council in 2008 is
€488.913 million - a 24% increase on last year.
Council members attended a workshop this week at
which they discussed the budget.
Councillor Francis Conaghan said: “We did meet with
IBEC before Christmas and they did ask that if there
were increases they would be in line with inflation.
A 5% increase is in line with inflation but we will
discuss all of the options because the last thing we
want to do is to run the risk of putting businesses
to the wall.”
The Newtown-based councillor meanwhile said he was
concerned at the possible shortfall in funding for
the roads programme.
“My main issue of concern is that the amount
requested is less than the amount allocated to the
roads programme, so will they be able to deliver the
programme now with the money they have been
allocated?"
Meanwhile Buncrana based councillor Padraig
MacLochlainn says he expects “some frank talking” at
the workshop.
“The members are very concerned about several issues
in the budget, not least of which is the fact that
there seems to be a serious shortfall in the money
needed for the roads programme.”
Councillor MacLochlainn said there was a clear
discrepancy in terms of local Government funding
because there is such a small commercial rates base
in this county.
“Donegal never benefitted from the economic boom,
there was a construction boom for a while but we
have a bit to go to catch up with the rest of the
country. Yet when the council proposed alternatives
like rates on holiday homes we were told by the
government that is was against their policy.”
Colr. MacLochlainn maintained a tax of €1,000 per
annum on each holiday home would yield €8 million in
revenue for the council and would allow them to
freeze commercial rates.
“Instead we are looking at proposals to increase
commercial rates by 5% and commercial water rates by
26%. The business community is getting it every way,
they are under pressure in a lot of ways.” |
