InBus_Win09_1-55:InBusiness 1-61 11/12/2009 16:20 Page 54
FEATURE | Local Government
REFORM
right now!
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WHILE THE STRATEGIES for effecting reform business. “All Irish local authorities should pass
The collapse of development
vary from party to party, there is general on the benefits of the pay pause and pension
consensus that local government in Ireland levy to public service salaries and revisit the
levy income that followed the
needs an overhaul. The revelation from calculations on which any agreed increases were
downturn in construction
Chambers Ireland that development based, not just in commercial rates but also in
contribution income in Dublin, Cork, Galway, water and waste charges,” he says.
activity – together with
Limerick and Waterford has fallen by almost Changes to the Local Government Fund in
changes to the Local
two-thirds since 2007 underlines the urgent the supplementary budget 2009 enabling
need to create alternative revenue streams. central government to retain sums from the
Government Fund – have
However, there is also widespread agreement fund are a further threat to local authority
focused minds on the
that this cannot simply be achieved by budgets, says Chambers Ireland deputy chief
increasing the burden on businesses. Labour executive, Seán Murphy. In addition to property
economic as well as
spokesperson on housing and local and water charges, he advocates additional cost
democratic importance of local
government, Ciarán Lynch, says the two major containment measures including reverse
issues on the agenda in 2010 are rents and benchmarking and non-replacement of staff as
government reform.
rates. “As part of our local government they retire. Murphy also supports a tight line on
InBusiness looks at some of
manifesto we have been promoting the concept commercial rates. “Given that both the cost of
of an introductory commercial rates base where living and wage costs have declined, local
the potential solutions to the
businesses pay a lower amount during their first authorities must work to do likewise.
funding shortfall.
couple of years of trading.” Furthermore, the cost differentials with Northern
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Chair of Chambers Ireland’s ratepayers’ Ireland are too great with business in the
council, Hilary Haydon agrees that charges Republic being hampered by higher costs.”
which must be paid whether a firm is profitable Whether some or all of these suggested
or not damage competitiveness and add to the changes will ever see the light of day remains
other economic challenges faced by Irish unclear. Last December John Gormley TD,
54 InBusiness Winter 09
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