The Galway City Council is facing a shortfall of €9 million by the end of this year as income from rates, development levies, water charges, and rents fall - a situation which may force the council to abolish the refuse waiver scheme.
According to the Mid-year Financial Report on the council’s 2009 revenue budget, written by city manager Joe MacGrath, a major drain on council resources is the waste collection waiver scheme.
The report notes that the “waste collection waiver continues to be of concern” as it costs around €2 million a year to operate.
“This is utterly unsustainable and radical action is required to prevent a financial deterioration, which may become irreversible,” wrote Mr MacGrath. “While the council will abide by our commitment to grant full waiver in 2009, this cannot be continued into future years.”
Any threat to abolish the waiver is likely to be met with fierce resistance by councillors who will not want to suffer any public backlash against such a move.
The waiver is provided to low income households which relieves them from having to pay for refuse disposal. The Galway City Council is one of the few local authorities to provide a waiver with many councils having privatised their refuse collections.
Fianna Fáil councillor Michael J Crowe this week said the waiver is “under serious threat” and he believes that City Hall officials “want to abolish it”.
Despite the enormous cost of operating the waiver, Cllr Crowe said he will not support any move to abolish it.
“We must continue with this waiver,” he said. “We must look after the people who need it most and that means maintaining it.”
Cllr Crowe will be arranging a meeting with the manager and his officials in the next couple of weeks to discuss this issue and to see if the waiver can be maintained for 2010.
