Council facing another €120k cut as household charge shortfall continues

Offaly County Council is facing additional cuts of over €120,000 unless household charge compliance rates in the county can be dragged up to 65 per cent by November. The council's general purpose grant payment from the local government fund (LGF) was already cut by €386,784 in quarter three due to a compliance level of just 49 per cent. The first half of the council's fourth quarter payment is to be delivered regardless of compliance rates, the Minister for the Environment announced late last week. However the second half of the payment will be released in mid-November and will be dependent on household charge collection rates. Local authorities with compliance of 65 per cent or over will see no reduction in their final payments, while those with compliance of between 60 per cent and 65 per cent will have half a per cent shaved off their annual reduction in the final payment and those with compliance of 60 per cent will see a one per cent reduction in their annual allocation. Offaly's household charge compliance stands at just 54.6 per cent this week, leaving it in line for a cut of €121,648 in November if this remains unchanged. A statement from Offaly County Council this week highlighted that reductions of €4.2m had to be made to balance this year's budget, while a further €1.2m was cut from the budget last June to mitigate a projected reduced water income and other costs. To avoid adding a €121,648 reduction to coffers that are already down €386,784 in earlier Governemnt payments, the council has appealed to all householders in Offaly who are liable for the household charge to pay it, and all those entitled to waivers to register for them. Meanwhile Environment Minister Phil Hogan as described the situation as "a delicate balancing act". "Local authorities need to continue to deliver services as efficiently and effectively as possible to the communities they serve," he said. "However, local authorities rely on the income of the household charge to fund these essential services." Offaly Fianna Fail TD Barry Cowen this week described the latest news as "another cynical and dishonest budgeting ploy from Minister Hogan". He also pointed out that even local authority areas with full or high compliance rates will not see reductions imposed in July due to non-compliance reversed. He described the implementation of the household charge as "haphazard from the outset" and said the continued low payment rate lies at Minster Hogan's doorstep and not local authorities. "It's time for the Minister to start taking real responsibility for the household charge debacle and stop trying to fob it off on local authorities," he added. Independent Offaly councillor John Leahy this week described Minister Hogan's decision to target local authorities in order to make up the household charge deficit as "shameful and utterly unfair" and said any further reductions will see local services "drift into a dangerous spiral". "Offaly local authority cannot sustain a €500,000 hit, which will have an immediate effect on services," he said. "Is it fair that roads are not repaired or emergency services are not resourced adequately because the Minister wants to penalise the people of Offaly for the second time this year for lack of payment of the household charge? "If Offaly's compliance rate does not exceed 65 per cent, everybody - regardless if people have complied with the charge - will be adversely affected. People in Offaly have a difficult choice to make: pay the charge or allow the government to reduce our allocation," he concluded. Household charge payments can be made online at www.householdcharge.ie, by posting an application form to PO Box 12168, Dublin 1 or at local authority offices. Last Wednesday the Local Government Management Agency (LGMA) warned property owners who have not yet paid the charge that penalties and interest that currently put the charge at €116 will rise to €127 in the month of October.