Some 30 posts to remain unfilled at county council

Value for money was the buzz phase on Monday as Offaly County Council voted to freeze commercial rates for 2009 in a bid to support local businesses who are battling to survive the recession. Councillors agreed to take a 20% cut in expenses in a bid to save part of the €240,000 which would have been raised through the rates increase, which was proposed in response to the government cutting €1 million from the local government fund grant. Councillors reiterated that while front-line services must not be affected by the budget cuts, the public needed to be confident that Offaly County Council was providing value for money and cutting unnecessary costs. A total of 30 council jobs will remain vacant, as the filling of permanent posts will be deferred, temporary contracts will not be renewed and staff on leave will not be replaced from now until this time next year. However, after questioning from independent Councillor Dervill Dolan, Mr Gallagher said he would not be taking a 10% pay cut despite a government suggestion earlier this year. 'Why are the senior management, that is the county manager, the four directors of services and the county officer, why are they not taking a 10% pay cut as indicated in the government budget?' said Cllr Dolan. He said that management was paid €60,000 in performance-related payments for 2008. 'I presume they"ll receive the same amount in 2009. Why do they feel entitled to a bonus now?' he asked. Mr Gallagher said that their salaries were determined through a national process. 'I am not in a position to answer that (why he won"t take a pay cut) because I don"t determine that, it"s a national remuneration,' he said. He said as the government awarded the salary, it was up to the government to decide on cuts. As well as the 20% cut in conference expenses, a saving of €21,000, there were four other cutbacks agreed on to make up for the rates freeze. The capital loan repayments on the Aras on Chontae building will be reduced by €74,000. The council grant to Comhaltas for the Fleadh Cheoil will by cut by €10,000. There will be a cut of €6,000 in funding to the Midland Regional Authority and finally, a cut of €133,071 in the central management charge. Councillor Eamon Dooley was the only councillor to express reservations about the rates freeze. 'But if it sends the right signal to businesses, then we"re acting responsibly. I"m not sure it will work for small business though.' He said that although the councillors were taking a 20% cut in expenses, they were already on one of the lowest allowances in the country. Cllr Tommy McKeigue said that the €1 million cut in local government fund meant the council had a huge uphill battle that would be hard to reverse. He said the council was always 'over-dependent' on development levies and this was not sustainable. Planning permission applications were down by 50% in 2008, and the council expects them to drop by that amount again this year. Cllr Danny Owens said that there was some pain for the council staff being let go as a result of the budget. He said that he was concerned about the budget estimate of a large increase in waste management income. He said that a €1 million increase from Derryclure landfill was 'a big assumption'. 'I hope we don"t run into problems with waste management down the line,' he said. 'The majority of councillors felt it was important to send a message out to people,' said Cllr Marcella Corcoran Kennedy about the rates freeze. She welcomed the continuation of funding for the various arts programmes. Cllr Connie Hanniffy said that small and medium local businesses needed the council"s support as they were facing falling consumer confidence and a drop in customer spending. She said that a short-term cash flow was a big problem for many businesses in Offaly. 'We"re trying to provide a climate today for people involved in business... to ensure their survival and competitiveness in the future.' She criticised how the government, often under EU directives, 'dole out regulations and compliances to beat the band' but fail to provide funding to help the council to comply with standards, often set by government-appointed consultants. 'There"s no money to use to upgrade villages or towns. We spend all the money to satisfy central government,' said Cllr Tom Feighery. 'We"re caught by the EPA and many charges by central government. We should be getting more money from that fund because we spend so much on central government rules.' He said that as a 'poor, rural county council' Offaly relied heavily on the local government grant and not on income from rates, unlike urban county councils. Cllrs Fergus McDonnell and Cllr Noel Bourke agreed that the 0% would provide encouragement and some comfort to ratepayers.