‘Projects will suffer’ if city cuts Property Tax

City councillors could find themselves in a ‘damned if they do and damned if they don’t’ situation on Wednesday when they vote on a reduction proposal for the Local Property Tax.

Sinn Féin are pressing for a ‘one swoop’ 15% reduction in the Local Property Tax that goes into the coffers of the City Council for the provision of local services and amenities.

But some councillors fear that if such a cut is made to the income of the City Council, important sports and amenity projects will end up once again going on the long finger.

“There isn’t a councillor in the city or indeed across the country who wouldn’t favour a 15% cut in the property tax, but I’m afraid that the reality of this will be, that some major sporting and amenity projects will suffer,” said Cllr. Billy Cameron.

He said that in the past he had seen the juggling and effort involved on the part of the City Council where adjustments of around €250,000 had to be made – if the full 15% cut was to be made, schemes would be impacted upon.

Cllr. Cameron said that while the 15% cut might be a populist stance for Sinn Féin to adopt, the Council would have to look at the implications for projects such as the St. James’ GAA club development, phase two of the Corrib Park amenity project and the provision of the artificial playing surface at Cappagh Park.

However Sinn Féin councillor, Cathal Ó Conchúir, told the Galway City Tribune, that the issue had to be looked in a national perspective and in the context of the whole principle of the tax.

“We will be seeking the full reduction in the local property tax. This has been an unjust tax based primarily on people’s debts as they struggle to pay off mortgages.

“We really are a people that are at exhaustion level with taxes. We have the pensions levy, the universal social charge, PRSI and we just threw another €150 million into consultants to set up Irish Water. It’s well time to shout stop,” said Cllr. Ó Conchúir.

A spokesman for the City Council said that there was a statutory obligation on the local authorities to take a decision on any alteration to the Local Property Tax rate before September 30.

“At the City Council meeting on Wednesday, we will be setting out in detail the implications of any changes in the Local Property Tax rate. We will have a ready-reckoner guide for councillors to indicate how any change in the rate will impact on our finances,” said the spokesman.

Earlier this month, Environment Minister Alan Kelly, outlined that 10 local authorities, including Galway City Council, would be able to implement the full 15% tax reduction and still retain a surplus.

From 2015, local authorities will receive 80% of the Local Property Tax directly, with the remaining 20% to go into an ‘equalisation fund’ aimed at propping up ‘poorer’ Councils.