Fianna Fáil and Green property tax proposals will leave almost €15m hole in Carlow County Council’s finances.

18th June, 2019

FFianna Fáil and Green Party proposals on Local Property Tax will leave a €14.7million black hole in Carlow County Council’s finances, Fine Gael TD, Pat Deering has said.

Deputy Pat Deering said: “A proposal from the Fianna Fáil, Green Party, Social Democrats and Labour Party to allow richer counties to keep all local property tax revenues could result in a black hole in Carlow County Council’s finances over the course of the next five years.

“Under the so-called “Dublin Agreement” between the four parties to control Dublin City Council, they have committed to seeking to “to retain and spend 100% of Local Property Tax collected in Dublin City on Dublin City Services.”

Currently each Local Authority retains 80% of the LPT raised in their Local Authority area.

The remaining 20% is paid into an Equalisation Fund, which is used to support Local Authorities that do not have a sufficient revenue base to meet their funding needs. In 2019, Carlow received €2,952,545 out of the Equalisation Fund.

“The proposal by Fianna Fáil that this money would just be retained in the richer counties would blow a massive hole in Carlow’s finances,”.

“Fine Gael would welcome a move to allowing each local authority to keep all the money raised in their county, but only if there was an equalisation fund from central government to ensure that no local authority is worse off. Funding raised through Local Property Tax is re-invested in vital local services, from street-cleaning to footpaths to investment in our local parks.

 “The fact that Fianna Fáil have decided to push to allow the richer counties to keep all their revenues, without any thought about how it will impact on Carlow is deeply disappointing.

“Unfortunately, it would appear that as the prospect of national power gets closer for Fianna Fáil, they are already forgetting about Carlow.