IN condemning the funding mechanism of local government, Limerick Chamber has again re-iterated the urgent need for an overhaul of the system.
Commenting on the announcement of a 1.6% reduction in the commercial rate for businesses in the city in 2012, chamber president Kieran MacSweeney expressed dismay in a statement to this newspaper, “We are bitterly disappointed that a phased introduction of the 25% reduction needed in the city has not been adopted. It is widely accepted that the current rate differential between city and county is unsustainable and that the city rates need to be reduced by at least 25%. Yet it appears that nothing is being done to address the urgency of the need for a more equitable and sustainable income for local government. The fact that rates and water charges will account for almost half of the city council’s budget this year is farcical; the business community are not the only users of public services yet they are disproportionately burdened with paying for the services”, continued Mr. MacSweeney.
The Chamber went on to outline the importance of cost competitiveness; the high cost of conducting business in Limerick relative to other cities in Ireland must be addressed. “This is not just a Limerick issue, the funding of local government needs to be addressed nationally and we have lobbied strongly for a more equitable model whereby what is collected locally is spent locally
