Credit crunch hits County Council

Financial woes, as the recession kicks in for both Meath Co. Council and major employer, Tara Mines in Navan, have been outlined as both contemplated ways to deal with the crisis. A pay freeze for workers and proposals for seven-day cover at the mine were some of the measures outlined in a draft Budget for 2009 presented to unions and managers at the Navan mine this week. Growth in zinc stocks already have led to the closure of mines in British Columbia and Ontario, Canada but the local mine is attempting to survive the global crisis through cost-cutting measures. The Navan mine"s Managing Director, Magnus Arnqvist was due in Stockholm today (Wednesday) for a meeting of all the Swedish Boliden group"s mines" bosses. All are presenting proposals to see out the recession. Meanwhile, the drastic drop in development levies is presenting a financial crisis for Meath Co Council as it prepares the Budget for 2009. The statutory meeting on the Budget is to take place on 8th. December. 'This is going to be a very, very difficult Budget,' said Head of Finance, Fiona Lawless at a special meeting of Meath Co Council on Thursday of last week. She stated that the local authority would be lucky to collect €15 million in development levies this year due to the recession in the housing market. The figure budgetted for these levies in the 2008 Budget was €23 million. But this figure is certain not to be reached now, with major implications for the capital programme for 2008. Meath Co Council"s peak year for development levy income was 2005 when the total was €35 million. Some of the chief funding issues for the council in 2009 were outlined by Ms Lawless. These range from €51.2 million needed for Part Five housing acquisitions, €13 million for strategic non-national roads, €7 million for the Trim Recreation Centre and €3 million for the Solstice Arts Centre in Navan. The contribution for water and sewerage to other local authorities is €13.5 million. Overall, members heard that, in 2008, planning income was down as was water income, illegal dumping had increased costs and the machinery yard issue as well as compensation and legal costs to the Station House all had major implications. Members obtained copies of circulars from the Minister for the Environment, Heritage and Local Government, John Gormley, regarding allocations from the Local Government Fund for the Co Council and the Town Councils in Navan, Kells and Trim. The allocations are €28.176 million for the County Council, €60, 799 for Trim Town Council, €601,415 for Navan Town Council and €519,192 for Kells Town Council. Councillors heard that laying-off of temporary workers had also taken place. This was expected to claw back some €2-3 million. Ms Lawless said most of the senior staff and section heads had been called in and told about the financial issues. Partnership was the only viable approach to the issue.