Following a controversial adjournment of the January meeting of Mayo County Council, this week's February meeting of the authority was a marathon four-hour-plus session in which the agendas of the two months were dealt with - and where the cost-of-living crisis became front of centre for members.
Numerous issues of concern and worry were raised by the members in the Aras an Chondae chamber during the meeting, including the new N5 road development and matters arising from its construction; flood plains, flood plain maps, the changing nature of flood risk, whether the council had actually built houses on flood plains; the Murrisk to Louisburgh Greenway funding saga and whether it would be delivered.
However, a presentation on the end-of-year Rate Collection report by Director of Finance Peter Duggan, which was welcomed by councillors, also proved a catalyst for a lengthy discussion on the cost-of-living crisis facing people and particularly, the high level of rates levied on businesses.
Mr Duggan's certified report showed that in 2022, of over €35 million due to be collected in rates in Mayo, over €31 million had been paid by year end, with an additional €1m plus paid since January.
Regarding a proposed rate review again next year which could see charges going even higher, Cllr Michael Loftus said he worried the council would get 'an awful lot of abuse if this rate review happens' and stated: "Businesses will close, you hear of them struggling as it is; some people are telling me their rates are doubling and trebling, you are crucifying us with rates, is what they will say to us next year when we are seeking re-election."
Cllr Christy Hyland cited the example of one small business that formerly paid €1,000 in rates now having to pay €5,500, on top of a 500% increased electricity bill up to €6,000 and said: "They will be closing down because no way will they be able to pay. They will just close the door and walk away; already a whole host of restaurants are closing."
Great excuse to blame the war
Cllr John O Malley said anyone would think there was a conspiracy against rural Ireland with huge cost increases for farming and people being crucified more and more with the high prices of everything. "It is a great excuse to blame the war for it but these prices were going up before there was ever a war and if the government don't do anything about it they will get an awful shock when they go to the polls the next time. All our young people are leaving for Australia."
Cllr Gerry Coyle said it was 'unbelievable that ESB costs alone are crippling businesses' and that there will be 'fierce changes for people' once they get their new energy bills', adding: "It is absolutely out of control. €13,000-14,000 a year on rates for a small filling station in North Mayo; if you think that is acceptable, then you are not at the races. It is just coming to a standstill because nobody is going to expand."
Cllr John O Hara said he paid €2,500 on rates last year, adding: "Now its €11,000, its only a small pub. When local business goes we will have no community and no towns because these are the people that keep them going."
Cllr Patsy O'Brien said that publicans and small businesses need to be given a rates tax relief because otherwise 'rural Ireland will close down' and if the government doesn't subsidise new tax systems for small business, "we won't be here either."
Cllr Damien Ryan said the rate review system was outdated and that the proposed annual increments could not be forced on businesses. "Energy isn't costing what is being charged for it so that cost and savings has to be passed on", he said.
Cllr Cyril Burke said quite a number of people have also had a reduction in rates adding: "I am aware a lot of people have increased bills and that this is a difficult time. When it was decided we would review the rates this year, nobody foresaw the war or cost of living crisis." He proposed that a presentation be made on how smart meters work and how people could avail of cheaper energy rates.
Cllr Paul Mc Namara said he always had an issue with the fact that valuation of a property for rates was carried out in Dublin, adding: "What do people even get for it? It is a tax on business and I don't agree with it. The hospitality business we are so dependent on, it is seasonal, yet the rates are the same as on the east coast. Businesses are facing a major tsunami in the next three months between energy, rates and the elephant in the room - the vat rate. If that goes from 9% to 13%, I can tell you a lot won't open their doors in 2024." (On Tuesday the government extended the 9% rate until August ).
Cllr Ger Deere said it was a very tough time for businesses and he had been made aware that the small and well-managed Micheal Davitt museum in Straide had just received an ESB bill of over €4,000 - €60 less than the entire bill for the previous 12 months, adding: "Micheal Davitt would turn in his grave at what is going on here."
Mayo County Council CEO Kevin Kelly advised members that if proposals made to amend the council Small Business Support Scheme were followed through on to favour businesses, the funds "will have to come out of somewhere else in budget 2024."
