It was expected to be the toughest budget inflicted on Galway city in more than 20 years, however, thanks to an unprecedented cross party effort by all 15 city councillors, Galway was spared the worst in City Hall’s first budget of this current recession.
In the run up to the budget, there were fears the commercial rates would be increased by c3.3 per cent, that the waiver would be abolished, and that there would be €2 increases on car parking charges. These cuts were expected as the Government had cut the Local Government Fund to the city by €674,000 - a 6.9 per cent drop from last year.
At Monday’s city council meeting, the rate proposed was even higher at 3.8 per cent but councillors felt that in the current economic climate it would be harmful to business in the city. As a result, the meeting was adjourned for an hour so councillors could see if other options could be explored.
A group consisting of Fianna Fáil/Labour/Daniel Callanan/Terry O’Flaherty and another led by Fine Gael found their proposals and suggestions to be similar. They came up with a joint proposal to modify, change, and make more palatable the proposed budget. The city manager Joe MacGrath and his officials were satisfied that the figures balanced and the budget was passed.
The major taking point has been the one per cent increase in the commercial rates - which has been welcomed by IBEC West and the Galway Chamber of Commerce - and is possibly the lowest ever seen in Galway.
“All councillors were willing to come together for the good of Galway city,” said Green Cllr Niall Ó Brolcháin, “and come up with an innovative and stimulating budget for both the community sector and the business sector.”
“Councillors recognise business is suffering badly,” said FG Cllr Brian Walsh. “There was no way we could justify the 3.8 per cent increase the officials were proposing. It had to be reduced. It was a good meeting and coucnillors came together to frame what was a difficult budget.”
Despite the fact that Ireland is now in recession, there were good news items from City Hall’s budget. The waiver scheme is to be maintained in full; the green and brown bin charges will stay at their current rates; car park charges to go up to €5, instead of €6; there is a new €70,000 local fund to combat homelessness in Galway, which was originally proposed by Cllr Terry O’Flaherty at meetings with Cllr Billy Cameron and Cllr Callanan; a new €70,000 local fund for small scale sports grants is being introduced; no increase in recycling charge; and an increase to the arts grants of €50,000 - including a €20,000 contribution to the Galway Arts Festival.
However there were cuts in a number of areas, such as €300,000 in the roads and infrastructure budget, but councillors urged officials to seek the money through other areas such as change so-called ‘irrecoverable rates’ and getting the Government to honour its promise to fund the Mutton Island sewage treatment plant.
“We had to cut hard in many areas and there is no question that it will be more difficult to deliver services than it has been to date,” said Cllr Ó Brolcháin, “however, all councillors recognised the difficulties posed by the current recession and I believe we have done a good job with the monies that were available.”
