Navan council set to increase commercial rate

Hard pressed Navan businesses can expect a 2.61 increase in rates when the town council adopts its annual budget for 2012 next week, but parking charges are likely to remain at current levels. Councillors are facing a stark budget process with an 8.98 per cent reduction in funding from central government. They will hold a preliminary meeting tomorrow night (Thursday) and are expected to formally adopt the budget next Tuesday night. Government funding to the council this year is €392,000, down from €430,000 last year. The council is obliged to raise commercial rates this year as part of the process of bringing them in line with Meath County Council charges. Under the town boundary extension, which took place in 2009, conditions were imposed on the Navan local authority, obliging councillors to increase the rate over a number of years until the rate in the town and county were the same. Other measures proposed by the county manager for this year's budget will be the allocation of €250,000 for refurbishments of dwellings in St Ultan's Terrace, St Brigid's Villas and Flower Hill Crescent. Councillors are expected to agree to the allocation of €40,000 for a business development fund and €78,000 towards the development of the town park. Cllr Shane Cassells has hit out angrily at the large decrease in central government funding. "I am disgusted at such a huge decrease. We are already seeing that the household charge is not likely to be a modest €100 charge, but is more likely to be €600 on hard pressed families. "Before they were elected, Fine Gael said they were against a property tax and would avoid it by cutting funding to local government. "Now we have both a property tax and a cut in funding. This is even more deception by Fine Gael," he said. Cllr Cassells said he was amazed at the silence of Labour, Fine Gael and Sine Fein on the issue of rates increases. "They were all attacking Fianna Fail about rates increases but all is silent on the battle field this year," he said. Meanwhile, Navan Chamber of Commerce has highlighted the increases in rates faced by retailers and businesses in Navan over the last number of years and has echoed Chambers Ireland's recent call for local government rates to be set at appropriate levels for 2012. Frank Harrington, vice president of Navan Chamber, said the rates burden on businesses in Navan had increased every year since 2008. "Rates in Navan have increased by over 15 per cent since 2008 while other comparable towns have seen decreases during the same period. Navan Chamber accepts the necessity of local government rates but highlight the need for them to be set an appropriate levels to ensure competetiveness. Small and medium enterprises have a crucial role to play in rebuilding Ireland's economy. Government, both national and local, must play a role in ensuring competitiveness within the sector". Mr Harrington also highlighted the need for more transparency and consultation between businesses and local government and looked forward to entering constructive dialogue with the council with the benefit of all stakeholders with an interest in the town of Navan in mind. He echoed the call by Hilary Haydon, chair of Chambers Ireland's Ratepayers and Local Government Council who said that the dependence on commercial rates to fund local government services was still too high and if rates rise further, the future of local business and jobs would become 'increasingly uncertain'.