Donegal will see no increase in commercial rates in 2023

There will be no rate increase for businesses in Donegal for the fifth year in a row

The news was delivered by the chief executive of Donegal County Council, John McLaughlin at this afternoon's budget meeting.

He said the council has not increased commercial rates in years 2019, 2020, 2021, or 2022 and the 2023 draft budget is not recommending any increase based on the need to allow many businesses to deal with the wider inflationary pressures.

He warned however that this might be the last time. He said given the five consecutive years of no increase in commercial rates, the rising costs facing the council in carrying out its business and the need to provide for much-needed work, it is expected that commercial rates will need to increase in future years.

In his report to the meeting, Mr McLaughlin says this Draft Budget provides for expenditure in the sum of €175,555,907 for the year ending December 31, 2023.

This equates to €481,000 per day and an increase of €13 million on last year.

"It is a very challenging budget, in the midst of the effects of very high inflation costs and the consequential cost of running the business of the council.

"However, it is structured in a manner where it can be made work. It will cover the basic and essential activities and will also provide monies to allow further development."

He points out that it is set in the context of maintaining a focus on the core business of the council and on the day-to-day operational requirements that will arise during 2023.

He adds it takes into consideration the many external factors that might affect the work of the council and the development of the county over the next five to ten years in particular their focus on the Northwest Region including the Shared Island initiative by the Government along with the international inflationary pressures and effects from the war in Ukraine.

The chief executive says 2022 has brought a significant cost of living crisis across all of Ireland and much of the world.

"The cost increases that we had experienced in the previous two years during the Covid pandemic did not ease and instead have worsened. Much of this has been attributed to the effects of the war in Ukraine with the linked sanctions in Russia which have had a particular disruption on the costs of energy."

He cites as an example the fact that the council's electricity costs have already increased by over 200% in 2022, with a projected increase of plus 241% being required in the budget provision for 2023. He also says their construction contracts have increased significantly right across all divisions.

He also points out that without the financial assistance they received from the government it would not have been possible to bring forward this balanced budget.

Mr McLaughlin acknowledges the increases in essential household necessities such as food, oil, gas and electricity that have impacted citizens and communities adding he knew many families find it difficult to pay for everything on top of their housing and other costs.

He accepts businesses across the county are experiencing the same type of inflationary costs.

"The county needs and supports businesses as they do their best to work through another difficult year. It is against this backdrop of our own rising costs in running the business of council set against the commercial businesses who also face rising costs, that we must consider the impact on commercial rates for 2023."

The council's head of finance, Richard Gibson and the various directors of services outlined in detail what their sectors were going to do in 2023 while the party whips and several independents Cllr Ciaran Brogan (FF), Cllr Gerry McMonagle (SF), Cllr Martin Harley (FG), Cllr Nicholas Crossan (Ind), Cllr Martin Farren (Lab), Cllr Michael McBride (Ind), Cllr Micheál Choilm Mac Gioilla Easbuig (Ind) and Cllr Ian McGarvey (Ind) (at his last budget meeting) offered what they believed priorities for 2023 should be.

All praised the efforts of staff while also outlining the need to meet new challenges, particularly in housing, cost of living, co-funding/development needs, and emergency services. There was special praise for those who helped during the Creeslough tragedy and those affected by the defective concrete blocks crisis. It was agreed by all councillors to seek a meeting with the minister for housing immediately to ensure he understood the gravity of the situation here. 

After over three hours of discussion and debate, the councillors passed the draft budget unanimously on the proposals of Cllr Harley and seconded by council cathaoirleach, Cllr Liam Blaney.

Chief executive McLaughlin said they would take on board all the comments made at the meeting and continue to strive for excellence for the council and the county.