Your budget is just around the corner!

Waterford Council is currently preparing the 2017 budget. Last week we saw the first shots being fired in this annual battle of the abacuses. Our Councillors, quite rightly, opposed and ultimately rejected an Executive proposal that would have increased your household charge, roof tax or Council tax by 7.5%.

This planned increase was to fill an indicated, circa €1,300,000, deficit hole in the 2017 budget. Interestingly, a similar figure also needed to be found, for a fissure that appeared in the 2016 budget – due, we were told, to the recalculation of rateable income from mobile phone masts and Irish Water infrastructure (I think!). With the direct result that an empty premises, commercial rates charge, of circa 20%, of the rateable value being introduced and levied on all empty premises in the City and County.

To be asking struggling households to stretch already broken family budgets and pay further housing tax would take even more money out of our very fragile local economy. The decision of our Councillors to reject this proposal will of course mean that the indicated shortage of €1,300,000 will have to be found elsewhere.

The normal “cash cow” for such a shortfall is of course commercial or business rates. Unfortunately, there are only so many times that you can milk a cow and as we are on the third tier of Ireland’s recovery table, any money coming out of our delicate recovery is a worry.

To put it simply, there are businesses in and around John Robert’s Square paying circa €40,000 in commercial rates. Assuming that they are working on a generous margin of 10% then these businesses will have to generate €400,000 in sales just to pay the rates bill alone. Now add on salaries, electricity, water rates, employers’ liabilities, insurance etc and you will see that in no time at all, a business could quite easily have to turnover in excess of €1,000,000 just to open its doors to a paying customer – that is how hard it is to do business!

Taking any additional money out of our delicate local economy, will have a detrimental effect on employment. Unfortunately, everything is linked economically through very precarious bonds and any attempt to stretch those bonds, which are already at breaking point, will have catastrophic consequences. 

Whilst we can see very small shoots of recovery, we need to keep the momentum going in the right direction and taking money out of our local economy is not the way to go. We need to be promoting spending, supporting business investment and most importantly encouraging people back into the very heart of our City, to shop locally.

There are a whole host of holistic measures needed to make this happen.

For instance, we need to start bringing people back into the City Centre on Friday evenings. One way is by getting rid of ridiculous car parking charges that continue way past 6pm. How can “early-bird” offers work if you are paying €3 or €4 in car parking charges? Businesses CANNOT stay open on a Friday evening if the footfall is not there! As it is TOO expensive to open for 2 or 3 hours when you are paying such high rates, wages, utilities etc etc. If you are only turning over a few Euros in sales, there is no point in being open and no business cannot continue to sustain mounting losses.

Someone somewhere needs to make these brave decisions and tackle why we cannot attract footfall into the City Centre.

Our Councillors rejected a proposed increase in household tax. Now, despite an apparent black hole in the finances, they need to push the Executive to be creative with car parking charges and, perhaps, insist on a pilot scheme to get rid of Friday night charges altogether. Try this and see if footfall increases. Try this and see if the City Centre can in fact attract people from other free car parking areas around the City Centre. A simple solution to a rather large elephant in the room!

Alas, I fear that the fear of change will result in maintaining the status quo.