Assembly debate Council Rates Issues
Published: 13 January, 2009
Local Sinn Féin assembly member Cathal Boylan has welcomed a motion in the Assembly from his party to try and deal with the problems many District Councils, including Armagh, are facing at this time.
The motion which was passed at Stormont read;
'That this Assembly calls on the Minister of Finance and Personnel to address the financial difficulties being experienced by District Councils in the calculation of the Penny Product, by initiating a process of consultation involving Councils and Land and Property Services, for the purpose of producing an accurate register of rateable properties; and to consider urgently measures to provide transitional relief to those Councils that are carrying forward a significant loss from the 2007-2008 financial year due to differences between the estimated Penny Product used to calculate the level of district rates and subsequent finalisation figures provided by Land and Property Services.'
'The motion called on the Minister of Finance and Personnel to address the financial difficulties experienced by councils in the calculation of the penny product. We believe that the Minister should initiate a process of consultation, involving councils and Land and Property Services (LPS), for the purpose of producing an accurate register of rateable properties that allows councils to professionally plan for the future on the basis of accurate forecasts from Land and Property Services.' said Mr. Boylan.
'In some areas, the domestic rate accounts for approximately 75% of council income, while the regional rate makes up only a very small proportion of central Government income. In recent years, some councils have made efficiencies and put plans in place to achieve further efficiencies in the years ahead. Leading by example in that way enables local government to move into the future in a more sustainable manner. Although efficiencies have been made, there have been no cuts in front-line services or in the many other services for which councils have the remit.'
He continued;
'Some councils have kept their rates down against the backdrop of rising costs, particularly in the areas of salaries and increased pension contributions, which can account for 45% of costs. Councils are facing huge financial pressures. Every citizen and business in every city, town and village is affected by the current economic climate, and that is one of the main reasons why we tabled the motion.'
In response to the debate the Minister for Finance and Personnel said;
'I am grateful to the Members who tabled the motion, which has provided an opportunity to debate the importance of rates revenue to district councils' provision of services. For many years, the rating system has provided the funds and relative stability that allow councils to plan and deliver services to their ratepayers.'
'The current economic outlook and the abnormal combination of several factors, some of which were highlighted in the debate, have had an impact on the revenue levels that councils can expect to receive from district rates. As Members know, councils are not alone in facing a difficult and challenging future: financial pressures, which have been compounded by the downturn in the economy, affect the Executive's and the Assembly's plans, as well as those of households and people in business. Difficult choices must be made in order to ensure that the resources that are available are used to deliver and improve the key services that most benefit the community.'
'The debate has been useful, and I welcome Members' suggestions as to how to assist councils and ensure that the rating burden continues to be equitable. The motion urges me to take several actions to help councils through these difficult times.'
'I hope to make an announcement as soon as possible about what we can do to help, and I hope to make a statement shortly on the issue.'
Commenting, Cathal Boylan said;
'I am pleased the Minister has taken the views on board and look forward to seeing what his response will be when he releases a statement to that effect as he has indicated. I am sure the Councils will welcome any relief the Minister can bring and Sinn Féin will continue to lobby for such action.'
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