Businesses to pay extra 2% in rates as Cork County Council set to spend a record €516m

Council chief executive Moira Murrell had asked for a 3% rates increase saying the money is needed as it plans to deliver enhanced services and a huge level of infrastructural development in County Cork.

She said it is setting aside money to purchase land for future housing schemes and for more economic development to aid start-up businesses in new and expanded local authority-owned industrial estates.

Money has also been earmarked for the regeneration of towns and villages and to employ extra outdoor staff.

Mayor of County Cork Fianna Fáil councillor Joe Carroll said the council is forced to raise a lot of money itself because “government allocations are a way below what they should be.” 

After nearly two hours of debate, Fianna Fáil councillor Gillian Coughlan, who has replaced Seamus McGrath TD as her party’s new council leader, called for a recess.

When the meeting was reconvened sometime later, Mr Carroll proposed a 2% rates increase with a 3.5% rebate on the first €12,000 owed.

Ms Coughlan acknowledged it is a very difficult environment for businesses, “but we [Fianna Fáil] believe a 2% increase is an excellent proposal". Independent Ireland councillor Danny Collins, a publican, said he wouldn’t have it on his conscience to agree to any rates increase.

Labour councillor Cathal Rasmussen said the money being set aside by the council to buy land for more social housing should be coming from the government.

“We’re told the country is awash with money and we need more from the government. We can’t be asking the ordinary person to carry the can again,” Sinn Féin councillor Eoghan Fahy said.

The council’s director of finance Lorraine Lynch said rates form about a quarter of the council’s income. It is estimated they will bring in more than €130m next year.

Ms Lynch said in recent years the council hadn’t increased rates in line with inflation.

After another adjournment there was further debate.

Fine Gael councillor Sinéad Sheppard, who owns dance schools, said she couldn’t support a rates increase as did her party colleague Marie O’Sullivan, who runs a restaurant.

“The costs for the hospitality sector have gone through the roof,” Ms O’Sullivan added.

Independent councillor Peter O’Donoghue maintained savings could be found elsewhere rather than hitting ratepayers. 

He said "trips" should be cut for councillors and officials, claiming the bill for foreign travel for St Patrick’s Day alone was €50,000.

Fine Gael councillor Anthony Barry suggested they’d get in more money by "offloading" the never-used Bottlehill landfill site which is “costing an extraordinary amount to maintain". 

Fianna Fáil councillor Patrick Gerard Murphy said only 10% of businesses pay over €12,000 in rates and with the rebate scheme his party was proposing those paying under that would be marginally better off.

No party whips were applied and after many hours of debate the 2% increase and the overall budget was passed by 20 votes to 11 with 14 abstentions.

The reduction in what officials had initially sought has reduced their proposed budget by an estimated €1.9m.