Local authority in crisis - yet €200m. leaving Mayo in windfall tax
Mayo County Council is facing a financial crisis at a time when a sum in excess of €200 million will be collected by the government in windfall tax from the Corrib Gas Field off the Erris coastline, The Connaught Telegraph can reveal.
Senator Paddy Burke has highlighted the fact the council must raise an extra €3.5 million to cover an expected rise in energy costs and well as meeting its national pay agreement commitments.
It also needs to secure matching funding in order for several key projects in the county to proceed, including the €11 million Castlebar core regeneration which has risen in costs by 20% since being announced.
While the government has allocated a sum €50 million to be shared among all local authorities to cover energy costs, Senator Burke will still be looking at a serious shortfall.
Now a former Castlebar independent elected representative has appealed to the county’s Oireachtas members and councillors to ensure the council gets a percentage of the Corrib Field windfall tax in order to meets its fiscal challenges.
Harry Barrett stated: “This is the biggest issue in the county in the current climate.
“Our biggest export by a mile is energy – yet we have a local authority strapped for clash while millions of euro, possibly as much as €300 million, will leave the county as a result of a tax on the profits of the Corrib Field and wind energy generators.
“Even if the council got 3% of the windfall tax, it would solve their problems.
“This is an issue that must be pushed forward by our councillors and Oireachtas members because it impacts on our local services, including our roads, swimming pools, libraries and so forth.
“The future of our county depends on getting the balance right in respect of this issue.”
Senator Burke stated are not many ways in which local authorities can raise funds now.
"They do not have fees to collect in respect of water, sewerage or refuse. There are very few means by which local authorities can gather money other than the local property tax,” he added.