cork's gathering - Cork Chamber of Commerce

LINKCork City Council and Cork County Council announced theirbudgets for 2013 in December. Cork Chamber is disappointed atthe decision by both councils not to reduce commercial rates forbusinesses in their budgets.The Chamber recognises the hard decisions facing both Councilsin preparing budgets given the ongoing fiscal difficulties,but believes that the absence of any reduction in commercialrates represents an on-going threat to the competitiveness ofbusinesses. This threat is further compounded in Cork City byincreases in water charges which present further challenges forcompanies who are especially reliant on this resource.The ever increasing reliance of local authorities on commercialrates income to fund city and county council operational costsis worrying. Rates revenue continues to account for a growingproportion of the overall local authority budget, while the localgovernment fund continues to steadily decline. Commercialrates now account for 33.6% of Cork County Council’s totalincome while government funding accounts for just 11.1%. InCork City Council, the situation is even more serious wherecommercial rates account for 40% of total income.While acknowledging the efforts of both councils to improveefficiencies through reduced personnel costs, the Chamberbelieves that more needs to be done to improve localgovernment efficiencies. Services could be effectively providedby merging both councils into one strong local authority to coverhalf a million people. The Chamber also continues to call forstrong independent local authority funding to be put in place toreduce local government’s growing dependence on commercialrates.The decision by both Councils to continue to ring-fence 1% ofrates income for the Economic development fund is welcome.This fund has supported a number of initiatives which havedirectly contributed to economic activity at regional leveland has been commended nationally as a unique model ofinnovation at local government level.As we enter into the new year the Policy Team wish to hear from you on keypolicy issues or challenges which you feel we should be prioritising in 2013.Please feel free to contact the Policy & Research Manager siobhan.bradley@corkchamber.ie or the Policy & Research Executive aislinn@corkchamber.ieThe Policy Team will also be conducting a monthly poll to seek the views ofour membership. This month we want to know if you would use a ‘Park & Ride’service if it was introduced at the County Hall. Further details are available onwww.corkchamber.ie or on twitter @CorkChamber