The now closed West Offaly Power Station in Shannonbridge.

Shannonbridge rates solution needed to ensure council stability

Offaly County Council is warning that a permanent solution to the loss of rates income from West Offaly power station in Shannonbridge must be found to ensure its own long-term financial stability.

The council's chief executive Anna Marie Delaney, while welcoming central Government funding of €1.7m to the council for the second successive year in compensation for the loss of rates income from Shannonbridge, said the funding had been recommitted for 2022 only.

She said the cessation of power production at Shannonbridge still presents a “very serious risk to the commercial rates income” in the coming years. Her view was backed by the council's head of finance Mark Connolly who highlighted that a permanent solution to this loss of income will be required to ensure that the long-term financial stability of the council is not put at risk “as a direct result of the decarbonisation agenda”. The comments were made as part of the council's draft budget which will be discussed by members at the annual budget meeting on Monday next.

The draft budget proposes no increase in rates. Currently, the council, via a Rates Waiver Scheme implemented by central Government, has provided a 100% waiver of commercial rates for businesses right through 2021. The scheme applies to all ratepayers in categories most affected by the pandemic.

The council's head of finance said the 2022 budget is framed on the basis of the economy returning to near normal (pre-pandemic) levels in 2022. He said any return to Covid restrictions in 2022 may result in a review of spending commitments in 2022.

The draft budget also highlights the potential impact of appeals by businesses against rates revaluations.

The council said the revaluation process led to no additional income but warned that ongoing appeals against new valuations represented “a very considerable threat to the income base of the council as the appeals that have been decided, have mostly been upheld resulting in a loss of income to the council, which could only be reinstated by a rates increase”.

The draft budget also reveals that the council has secured an increase in its funding for retrofitting from an original €3.3m to €4.2m.

The Just Transition retrofit funding has been increased following considerable engagement between the council's housing team and the Department of Housing, Local Government.