Sunday, October 12, 2008

Ireland –Government allocation to Local Authorities slashed for 2009-Rates to rocket

The Government-in the person of Minister for the Environment John Gormley is expected to slash support to Local Authorities by 13% in real terms. If as appears likely this is the case, rates on businesses will rocket. In addition water rates will climb steeply. This is stealth taxation in operation. It will escape analysis on budget day. Local Authorities –if deprived of an adequate Government subvention- will plug the gap by hammering businesses and agriculture. This will be the coup de grace for many in urban and rural Ireland. Water rates for farmers are already much too high. The FG Party has now advised councillors not to support such steep rises.

The Government should think again. It will kill the goose that lays the golden egg. It is just not fair to expect county councils and corporations to solve the government's funding difficulties. FF and the Greens face melt down in the Local Elections of 2009. In short the Government subvention cut is a massive stealth tax.

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