Jobs loss fears as council votes for rates hike
Tuesday November 25 2008
Dublin City Council last night narrowly voted to accept a controversial budget which will see commercial rates increase in 2009.
Councillors passed a 3.3pc hike in commercial rates but there was some good news for homeowners with bin charges remaining at current levels -- the first time in eight years that there hasn't been an increase.
Fine Gael and Sinn Fein councillors argued that a commercial rate increase of 3.3pc would be an additional burden on already struggling businesses and lead to job losses. But the vote was carried by Fianna Fail and Labour with 28 votes for and 22 against.
Retail Ireland, the IBEC group that represents the Irish retail sector, condemned the decision to increase commercial rates.
Director Torlach Denihan said: "The decision by the members of Dublin City Council to vote to increase commercial rates by 3.3pc is, quite frankly, incredible. Retail sales have fallen significantly in the year to date. The last thing the hard-pressed retail sector needs is a further increase in its cost base.
"This decision to increase commercial rates will make the retail sector in Dublin less competitive and put employment in the sector under pressure."
Fine Gael and Sinn Fein councillors told the meeting they were voting against the budget after a €7.6m cut in funding from the Government.
The council has been granted over €97m from the Department of the Environment, down almost 7pc from a year earlier.
However, Lord Mayor Eibhlin Byrne told councillors that the budget was the best that could be presented in the current economic climate.
"For those who would choose to vote against the budget or bring down the council . . . that would simply add to the insecurity that is already out there in the city," she warned.
Fine Gael had called for a 2pc increase in rates, arguing that businesses in the city were being hit bad by the economic downturn.
Councillor Ruairi McGinley, speaking on behalf of the Fine Gael group, said that, with trading figures already down by 10pc in the city, a rates hike would be a burden too far for businesses.
Demand
Sinn Fein councillor Daithi Doolan said it was not for the council to implement essential government cuts and requested an emergency meeting with the Environment Minister to demand more funds.
"Unfortunately, no matter how management attempts to massage the figures it would be Orwellian in the extreme to say this is not a budget of cuts."
The budget also includes a €330m cut in spending on infrastructure over the next three years with projects including the regeneration of Cork Street and improvement programmes in Coolock, Rialto, Inchicore and Smithfield all hit.
Under the draft capital programme, over €1.8bn has been earmarked to be spent over the next three years, including €457m on water, drainage and roads. In the area of housing, it is proposed to spend over €150m on affordable units and €397m on social units.
- Breda Heffernan
