Rates increase a possibility in parts of Offaly
SOME businesses in Offaly may face an increase in rates in the forthcoming budget. The County Council's draft budget for next year includes a provision to harmonise rates across the county. If this is done it would bring areas outside of Tullamore and Birr in line with those two towns, meaning that businesses in places like Edenderry and rural parts of the county would face an increase in rates.
Councillors were briefed on this by council officials on Monday and are currently considering their options in advance of Monday's budget meeting. Initially harmonisation was to have taken place in a phased basis over three years - 2016, 2017 and 2018 - but the fresh proposal now suggests one further increase, in 2017 to add to the first increase in the current year's budget.
The council is proposing the change as a rate revaluation is currently taking place and as a result, regulations mean the third phase of harmonisation cannot take place in 2018.
Councillors have two options: either defer it until 2019 or implement the 2017 and 2018 increases in next week's budget. Councillors have mixed views on what is potentially a very divisive issue.
Fine Gael Councillor John Clendennen said it's not clear what decision will be made at Monday's meeting. However he said if there is to be an increase in rates, he needs a guarantee that it will be ringfenced for specific projects.
'Unless I can see that this money is going to be spent on specific projects throughout the county I am not going to stand over an increase. It has to be earmarked for specific projects,' he said.
He said there is a rebate of 80% for smaller businesses so the impact on those would be minimal.
'Rather than increase local property tax (LPT), we said we would find something else in the budget. Our task is to try and find funding for projects we can start work on straightaway,' he said.
However Independent Cllr John Foley hit out at the proposal and said businesses are already badly affected.
'Businesses are struggling as it is. People are trying to create jobs. There are enough overheads as it is. My main concern is north Offaly. They are crippled with overheads. In some areas we don't even have a proper broadband,' he said.