This article is from page 4 of the 2012-12-25 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 4 JPG
CLARE businesses will not receive any rates reduction from Clare County Council in 2013 – despite many businesses already facing an uphill struggle to pay of current rates arrears.
Clare County Council voted on Tuesday to approve the Draft Budget for 2013 – which included no change in the rates for the county. The local authority has seen intensive lobbying from members of the business community in recent month – who claim that the current rates burden could force a viable local businesses to close their doors.
According to the County Manager, Tom Coughlan, the Council is not in a position to reduce the rate for 2013 because of large cuts imposed on other parts of the local authority’s budget.
The money that Clare County Council receive under the Local Government General Fund has been cut from € 16.48 million in 2008 to a projected figure of just € 10.07 million for 2013 – a cut of almost € 6 million or 3 per cent.
Over the same period the council wage bill has been reduced by € 44.8 million to an estimated figure for 2013 of € 35.6 million – a projected cut of € 9.2 million.
“The preparation of the Draft Budget has become increasingly difficult in recent years. The ongoing reduction in income has driven ongoing reductions in expenditure which has resulted in the implementation of ongoing efficiencies,” said Mr Coughlan.
“It appears that that model of operation will continue for the foreseeable future.”
A number of councillors raised the issue of a possible rates cut but this was deemed not possible at this time – if levels of services offered by the council are to be maintained.
Mr Coughlan said that a proposed 10 per cent rates cut – which would yield € 3.6 million – would mean that € 3.6 million of saving would have to be cut from other parts of the budget.
“If we were able to introduce a € 3.6 million reduction in rates, over € 2m would go to 13 ratepayers. That is the impact. The 2,107 ratepayers left would share the € 1.6m,” he said.