Chamber calls for overhaul of how councils funded

Athlone Chamber of Commerce has called this week for a complete overhaul of how local authorities are funded.
President John McGrath believes with the changes in local government coming on stream at the next local elections, that this is an ideal opportunity for those elected to instigate a root and branch review. It will also tie in with the property tax and water charges currently being implemented, he said.
“The percentage by which local authorities are funded by commercial rates varies drastically from one local authority to another and the transparency of the income versus expenditure within authorities is easily hindered by the complexity of the current model,” said McGrath.
“As a case in point there are two authorities within the geographical boundaries of Westmeath which have separate budgets. These being Westmeath County Council and Athlone Town Council.  In Athlone the commercial rates account for 50% of the cost of running the authority (rates of approx €5 million with running costs of approx. €10 million) while commercial rates in Westmeath account for approximately 15% (rates of approx €10 million with running costs of approx. €60 million).”
In general, Mr McGrath concluded that it is the belief of chambers nationwide that the business community carries a disproportionate burden with regard to the funding of local authorities.
“Much can be done to ensure this process is fair and that: valuations should be more open and transparent.  ‘Targeted reductions’ should be made available to struggling SMEs; and rates should be flexible and sensitive to fluctuations in the market,” he said.