The new rates, which will see increases in Fermanagh and decreases in Omagh, were set at a special meeting of Fermanagh and Omagh Council last Thursday night.

The controversial rates were passed by just two votes, with 16 Councillors voting against (DUP, UUP and the Fermanagh SDLP Councillors) and 18 voting for (Sinn Fein councillors and the Omagh SDLP Councillors).

A heated discussion followed, with Sinn Fein accusing the parties who voted against the rates – despite being aware of their impact in advance of the meeting – of “grandstanding and politicking”.

An average Fermanagh household, valued at £125,000, will now see a £47 increase on its rates bill compared to the bill it received in April 2014, while an Omagh home at the same value will see a £57 decrease.

The new rates mean that Fermanagh home-owners face an increase of 5.8 per cent on their rates bill, with Omagh home-owners experiencing a 5.9 per cent decrease.

Fermanagh businesses will face an increase of 0.85 per cent on their rates bill. This increase is separate from any impact of the non-domestic revaluation. Meanwhile, Omagh businesses will experience a 4.9 per cent decrease.

Fermanagh and Omagh District Council will become fully operational in six weeks (April 1, 2015). In 2015-16 it must raise £29 million from rates. This includes a capital programme of £13 million to be spent on items such as £600,000 on new vehicles; £500,000 for a new leisure centre at Bawnacre; and £200,000 on the Strule Arts Centre.

The total cost of the Council taking on its new planning, development, off-street car parking, economic development, regeneration and water recreation functions is £497,000.

“The Council is placing significant reliance upon the accuracy of the budgets transferring with these functions but has concerns about the adequacy of them,” a Council spokeswoman states. “In addition, Fermanagh and Omagh District Council has a new responsibility to lead on a community planning process, however no funding is being made available for this new function,” she adds.

At Thursday night’s special meeting in The Grange, Omagh, Chief Executive of Fermanagh and Omagh Council Brendan Hegarty outlined the uncertainty and “risks” surrounding the 2015-16 estimates. He explained that Council officers took into account cuts in grants from central government, including a 20 per cent reduction in the Rates Support Grant amounting to £347,000. “Virement of budgets within the total estimated expenditure” [i.e. transferring items from one financial account to another] may be required during the 2015-16 year, the Council expects.

The Council spokeswoman adds: “Careful scrutiny was undertaken on every aspect of expenditure of the new Council, and Councillors were mindful of a range of issues which made the setting of the rates even more difficult than usual.

“When the impact of the significant reduction in the rate support grant is applied, the non-domestic rate will be set at 19.8031 pence in the pound and the domestic rate will be set at 0.3238 pence in the pound,” she continues.

“There will be different impacts on rate payers depending on where they reside.” The rates take account of a proposed Regional Rate increase of 1.4 per cent, and the 80 per cent rate convergence relief available in 2015-16.

In anticipation of rate disparities between Councils such as Fermanagh and Omagh, the Department of Finance and Personnel (DFP) agreed a £30 million convergence relief scheme to even out the differences. The convergence relief will cover 80 per cent of the difference in the 2015-16 financial year (then at 60 per cent, 40 per cent and 20 per cent for subsequent years).

Owners of public sector properties in Fermanagh will not receive the benefit of district rate convergence relief and the impact on their bills will be a 3.54 per cent increase in the penny rate product. Owners of non-domestic properties in the current Omagh District Council area will see their penny rate product reduced by 4.92 per cent.

SDLP Councillor Josephine Deehan proposed that the rates be adopted and Sinn Fein Councillor Brian McCaffrey seconded the proposal. UUP Councillor Rosemary Barton asked for a recorded vote on the adoption of the rates.

Councillor Deehan commented: “We should not dissipate our energy in squabbling, rather we should ensure that the rate payer gets value for money. I hope that the people of Fermanagh will be able to survive.” UUP Councillor Alex Baird stated: “Neither Fermanagh or Omagh legacy council brought us here tonight. I have to go back to RPA, where the UUP, the DUP, the SDLP and Alliance wanted 15 councils. I believe a deal was done on the back of a fag packet between Sinn Fein and the DUP to agree 11 Councils. As bad as these figures are, it would have been an 11.5 per cent increase but for the transitional rates relief which the UUP fought for.” SDLP Councillor Richie McPhilips accused Sinn Fein and the DUP of creating a “gerrymandered situation”. He said “life in Fermanagh is difficult enough” and “Fermanagh would have been better off in a 15 Council situation”.

SDLP Councillor Patricia Rogers added: “A lot of people will have the risk of running into debt or going out of business.” DUP Councillor Keith Elliott stated: “The DUP is a party of low rates and that’s why we voted as we did tonight.” Sinn Fein Councillor Marty McColgan said: “All Councillors knew well ahead of this meeting what figures were being presented and what impact this would have on the rates.” Sinn Fein Councillor Brian McCaffrey added: “Taking into account the predictions of increases in the rates of percentages in the twenties and thirties I am confident that the rate we struck tonight was the best that we could achieve.

“What happened in terms of the vote, the level of politicking and the Russian Roulette was irresponsible, unbelievable and totally unjustifiable.”