Building upsurge keeps Council income on track

While planning applications are up by 15% and the collection of rates is up by a million compared to last year, Galway County Council finances are on target for the first half of the year.

In a short briefing to councillors at last week’s meeting of the local authority, the head of finance Gerard Mullarkey said things were as expected at the end of June.

By the end of August, the cash collection for rates was up a million compared to the end of August 2014. Most of the write-offs related to vacant properties where businesses no longer operated.

Tuam Independent Councillor Shaun Cunniffe said the council was burying its head in the sand when it came to making provision for bad debts in rates. He asked if it was going to be around €2m like last year.

Mr Mullarkey said much of those bad debts were related to businesses going into receivership or bankruptcies.

Cllr Tim Broderick (Ind) asked why the council could not have some sort of discretion when it came to rates.

“It’s happening in Oranmore, Ballinasloe at the moment that businesses are closing all over the place due to rates. I’d love to see some engagement from our officials with somebody from the Department. We are just building up bad debts without making some effort to engage with business owners,” he exclaimed.

“We seem to have huge discretion when it comes to write-offs. Why can’t we have some when it comes to dealing with people on an individual basis.”

He described as worthy a motion tabled by Councillor Martina Kinane (FF) which called on the council to create a “Commercial Rates Credit scheme” to support business owners and leaseholders who were financially impacted by infrastructure or road works that last for two weeks.

Cllr Kinnane’s insisted that commercial rates are placing an extreme burden on small businesses.

“They remain under intense financial pressure which is resulting in closures. I believe that there is an onus on Galway County Council to provide this targeted support scheme immediately to support businesses in Oranmore and other villages and towns within the county that are experiencing dramatic drop in footfall due to ongoing works,” she stated.

The chamber was informed that an amendment by the Government to the current legislation governing the administration and collection of commercial rates was required.

She then proposed that the council write to the Department requesting this change, which received the backing of all sides.

Acting director of services for planning, community enterprise and economic development Catherine McConnell said the number of planning applications were up by 15% this year compared to last but most were quite small in nature. It was too early to say whether they would result in an increase in income for the coffers.