CITY TRIBUNE
Commercial rates hike in Galway City ‘still on the table’
A proposal from management at City Hall to increase commercial rates in the budget for 2020 remains on the table, despite outright opposition from local businesses.
Sources in Galway City Council have indicated that they will present a draft budget at a meeting in November, which will include a proposal to increase commercial rates.
Last month, Interim Head of Finance at Galway City Council, Nepta Moggan, presented a draft budget to elected members that included a 1.75% hike in commercial rates.
This, she said, would bring in an additional €780,000 over a year, and would cost each ratepayer some €1.53 on average, per week.
Sources at the Council indicated this week that that proposed increase in rates will be included in the draft budget Ms Moggan, and Chief Executive Brendan McGrath, bring forward to the budget meeting in November.
It will be up to the 18 city councillors to put forward an alternative budget – which must be balanced – if they don’t agree with the draft presented to them.
In order to keep rates static – which is what two of the city’s business organisations have called for – councillors will have to find savings or other revenue streams in the budget that amount to €780,000.
“The only thing off the table is an increase in Local Property Tax (LPT), because councillors voted not to increase that. Everything else is on the table, and the draft budget outlined last month during the debate on LPT, which includes an increase in commercial rates, is very much a proposal that the City Council is looking to put forward and believes will be in the best interests of the city,” a source at Galway City Council said.
Galway Chamber and Galway City Business Association (GCBA) both oppose a hike in commercial rates.
Councillor Mike Crowe (FF) said it was “unlikely” that commercial rates will increase but ultimately that was a decision for councillors.
“The proposal from the Council to increase commercial rates wasn’t fantasy. That’s what they want to do. It’s in their draft budget. I think it’s unlikely to happen, but it depends on what the Greens do and what the [former] PDs (now Independents) do,” said Cllr Crowe.
The GCBA, which represents between 100 and 150 members in the city centre – from Mainguard Street to Prospect Hill and Forster Street – is opposed to any hike in commercial rates.
GCBA chairman Cormac McGuckian said: “It’s very uncertain times at the moment, and it’s predominantly due to Brexit. An increase in rates would obviously mean additional costs for our members, in an already tough environment, for retail in particular. It’s challenging with an ever-increasing cost base between rates, rents, wages, insurance, they’re all going in the wrong direction and turnover and figures are not matching it.”
GCBA echoes the sentiments of Galway Chamber, which is resisting an increase in rates.
David Hickey, President of Galway Chamber – which represents 400 businesses – said: “Galway Chamber had supported the 3% increase in commercial rates supporting Galway 2020 which is due to expire next year. The Chamber supports the proposed continuance of this 3%, but that the monies be ringfenced to stimulate economic development and enterprise activities. An additional increase of 1.75% cannot be sustained by business and will translate to job losses and increased pressure on already stretched businesses”.
The voting down by elected members last month of a proposal by City Council management to increase LPT by 7.5%, means the draft budget will be short by €620,000 before commercial rates are even taken into account.
From the Galway City Tribune – An impassioned plea for a ‘masterplan’ that would guide Galway City into the future has been made in the Dáil. Galway West TD Catherine Connolly stated this week that there needed to be an all-inclusive approach with “vision and leadership” in order to build a sustainable city.
Deputy Connolly spoke at length at the crisis surrounding traffic and housing in Galway city and said that not all of the blame could be laid at the door of the local authority.
She said that her preference would be the provision of light rail as the main form of public transport, but that this would have to be driven by the government.
“I sat on the local council for 17 years and despaired at all of the solutions going down one road, metaphorically and literally. In 2005 we put Park & Ride into the development plan, but that has not been rolled out. A 2016 transport strategy was outdated at the time and still has not been updated.
“Due to the housing crisis in the city, a task force was set up in 2019. Not a single report or analysis has been published on the cause of the crisis,” added Deputy Connolly.
She then referred to a report from the Land Development Agency (LDA) that identified lands suitable for the provision of housing. But she said that two-thirds of these had significant problems and a large portion was in Merlin Park University Hospital which, she said, would never have housing built on it.
In response, Minister Simon Harris spoke of the continuing job investment in the city and also in higher education, which is his portfolio.
But turning his attention to traffic congestion, he accepted that there were “real issues” when it came to transport, mobility and accessibility around Galway.
“We share the view that we need a Park & Ride facility and I understand there are also Bus Connects plans.
“I also suggest that the City Council reflect on her comments. I am proud to be in a Government that is providing unparalleled levels of investment to local authorities and unparalleled opportunities for local authorities to draw down,” he said.
Then Minister Harris referred to the controversial Galway City Outer Ring Road which he said was “struck down by An Bord Pleanála”, despite a lot of energy having been put into that project.
However, Deputy Connolly picked up on this and pointed out that An Bord Pleanála did not say ‘No’ to the ring road.
“The High Court said ‘No’ to the ring road because An Bord Pleanála acknowledged it failed utterly to consider climate change and our climate change obligations.
“That tells us something about An Bord Pleanála and the management that submitted such a plan.”
In the end, Minister Harris agreed that there needed to be a masterplan for Galway City.
“I suggest it is for the local authority to come up with a vision and then work with the Government to try to fund and implement that.”
The new Salmon Weir pedestrian and cycle bridge will be officially opened to the public next Friday, May 26.
Work on the €10 million bridge got underway in April 2022, before the main structure was hoisted into place in early December.
A lunchtime tape-cutting ceremony will take place on Friday, as the first pedestrians and cyclists traverse the as-yet-unnamed bridge.
The Chief Executive of Galway City Council, Brendan McGrath, previously said the bridge, once opened, would remove existing conflicts between pedestrians, cyclists and traffic “as well as facilitating the Cross-City Link public transport corridor over the existing 200-year-old bridge”.
The naming of the new bridge has been under discussion by the Council’s Civic Commemorations Committee since late last year.
One name that has been in the mix for some time is that of the first woman in Europe to graduate with an engineering degree – Alice Perry.
Ms Perry, who was from Wellpark, graduated from Queen’s College Galway (now University of Galway) in 1906. The university’s engineering building is named in her honour.
The bridge was built by Jons Civil Engineering firm in County Meath and was assembled off-site before being transported to Galway. Funding for the project was provided in full by the National Transport Authority and the European Regional Development Fund.
(Photo: Sheila Gallagher captured the city’s new pedestrian footbridge being raised on the south side of the Salmon Weir Bridge in December. It will officially open next Friday, May 26).
From the Galway City Tribune – Minister of State for Local Government and Planning, Kieran O’Donnell was labelled a “disgrace” for overturning councillors’ decisions to rezone land in the new City Development Plan.
Minister O’Donnell (pictured) confirmed in a letter to Council Chief Executive Brendan McGrath last week that he was reversing 25 material alternations made by councillors to the CDP 2023-29. He made the decision on the advice of Office of Planning Regulator (OPR).
Minister O’Donnell directed that 14 land parcels that were subject to land-use zoning changes by councillors as part of the Material Alterations to the Draft CDP should be reversed.
He directed that a further 11 land parcels in the city should become “unzoned”.
The Minister found that the CDP had not been made in a manner consistent with recommendations of the OPR, which required specific changes to the plan to ensure consistency with the national planning laws and guidelines.
At last week’s Council meeting Cllr Eddie Hoare (FG) asked for clarity on the process by which councillors could rezone the lands that had been changed by the Minister’s direction.
Cllr Declan McDonnell said, “What he [Minister O’Donnell] has done is an absolute disgrace”.
And he asked: “Do we have to have another development plan meeting to deal with it?”
Both Cllrs Hoare and McDonnell wondered what would become of the lands that were rezoned or unzoned by the ministerial direction.
Mr McGrath said the Council had put forward an argument in favour of retaining the material alterations in the plan, but ultimately the Minister sided with OPR.
He said if councillors want to make alterations to the new plan, they could go through the process of making a material alteration but this was lengthy.
The Save Roscam Peninsula campaign welcomed the Minister’s decision.
In a statement to the Galway City Tribune, it said the direction would mean the Roscam village area on the Roscam Peninsula will be unzoned and a number of land parcels would revert back to agriculture/high amenity.
A spokesperson for the campaign said: “the material alterations made by city councillors following lobbying by developers continued the long-standing practice of councillors facilitating a developer-led plan rather than an evidence- and policy-based plan that meets the needs of the city.
“The Minister’s direction is an important step in restoring confidence in the planning system. It is clear from the City Council’s own evidence on future housing projections that there was no requirement to zone these lands for residential purposes in order to meet the needs of the targeted population increase up to 2029,” the spokesperson added.
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