Council agree on 1.5% rates increase

Heated discussions resulted in the striking of a rate of €57.70, representing an increase of 1.5% for commercial business across County Cavan, but a reduction in the rate for Cavan Town, writes Thomas Lyons.

All it took was eleven hours of negations over two days for Cavan County Council to reach a consensus on an acceptable budget for 2017. Prolonged and heated discussions resulted in the striking of a rate of €57.70, representing an increase of 1.5% for commercial business across County Cavan, but a reduction in the rate for Cavan Town.

The sticking point of rates harmonisation caused ructions at the meeting. The initial budget put forward by Cavan CEO Tommy Ryan pushed for the introduction of rates harmonisation, representing an increase for most business in the county of four per cent.

Initially Fine Gael proposed harmonisation to take place over two years with a reduction in rates for the town, maintaining the county rate and a mid-term review of the council's finances and the shortfall in the proposed budget to be offset with Non Principal Private Residence (NPPR) funds - a tax that is being recouped on second homes.

The Fianna Fáil proposal was that harmonisation take place in the 2017 budget and that the gap in funds be plugged with NPPR income. Sinn Féin concurred with the proposal to harmonise the rates in one fiscal year.

As the chamber failed to reach an understanding in public and another adjournment was proposed, councillors agreed to conduct negotiations in camera. Despite being held in camera it was possible to hear raised voices express outrage as a divided chamber struggled to close ground.

After an hour of discussion, members put forward an agreed proposal. Across the county, the new rate of valuation will stand at €57.70. Cllr Madeleine Argue (FG) proposed the amendments to the budget.

This is the first increase since 2008 and Cllr Argue said there would be no more increases in the life time of the council that will run to 2019. A suggestion by Cllr JP Feeley (FF) that there would be no more increase in property charges was immediately shot down by the other side of the house.

Mr Ryan said that it was an intensive debate that would determine the future of the council. He said that he appreciated that the harmonisation was a large step and thanked the other members of the executive and the councillors for their contribution.

Speaking to The Anglo-Celt Fine Gael councillor Paddy Reilly (FG) said that, in 30 years of sitting on Cavan County Council, this was the first time he had seen it members challenge the Manager's figure so vigorously.