Local TD calls for tapered funding approach to protect Offaly services beyond 2026
John Clendennen TD has welcomed government engagement with Offaly County Council to avoid a funding shortfall
John Clendennen TD has welcomed confirmation from Minister of State John Cummins that officials will engage with Offaly County Council to avoid a "cliff-edge" funding shortfall arising from the closure of the West Offaly Power Station in 2020.
The Shannonbridge plant closed in December 2020 following the failure to secure planning permission to transition to biomass, resulting in a €1.7 million annual loss in commercial rates to Offaly County Council.
Deputy Clendennen said: "The closure of Shannonbridge left a significant financial void of €1.7 million per year in Offaly’s rates base.
I want to acknowledge that the Government stepped in at that critical time and has supported Offaly County Council ever since. That intervention has been crucial in protecting frontline services."
Government support is currently due to conclude at the end of 2026, while Offaly County Council has taken proactive steps to broaden and stabilise its rates base.
The Fine Gael TD for Offaly said that providing certainty is absolutely essential at this moment in time.
He stated: "Right now, we need to give the people of Offaly reassurance that there will be no impact on local services as this support winds down. We cannot allow a cliff-edge scenario at the end of 2026 that would place sudden pressure on council finances."
In response to Deputy Clendennen’s engagement, Minister Cummins confirmed that funding of €1.7 million will continue this year and that he has instructed officials to engage directly with Offaly County Council regarding a tapered approach beyond 2026.
John Clendennen TD welcomed the Minister’s position. "I made the case clearly that any withdrawal of support must be phased. I am pleased the Minister has acknowledged this and confirmed that a tapering arrangement will be considered.
A managed, tapered reduction would allow Offaly to plan responsibly and mitigate any impact on local services."
He added: "Offaly has navigated major economic transition in recent years. It is only fair that we are given the certainty and stability needed to complete that transition without jeopardising essential services for our communities."
Deputy Clendennen reiterated that he will continue to work closely with Government colleagues and Offaly County Council to secure a fair and sustainable outcome on the matter for the county.