At this rate, we need answers

Sarah Saunderson • Published 18 Feb 2010 09:59 0 Comments

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A report covering the economic appraisal of local government reform is hardly making the top ten of any bestseller list any time soon, but its contents could just make the average Fermanagh ratepayer sit up and take note.

On page 168 of this not inconsiderable report put together for the Government by PriceWaterhouseCoopers, it examines the potential fiscal winners and losers in these governmental arranged marriages.

Fermanagh, unfortunately, has come out top for all the wrong reasons. The Council is a "double loser". Under district rate averaging, we Fermanagh rate payers could be asked to pay a whopping 23 per cent more on our rates bills, the report suggests. This is the highest percentage increase by far of any of the "losing" Councils.

And under balance sheet amalgamation of the two councils, Fermanagh moves from a position of having cash per head of £62 to a net debt of £56 per head.

Conversely, Omagh would be the biggest "winner" in the rate convergence, with a projected drop of 18.28 per cent in their rates bills.

The report notes: "At present we understand that one potential option is to set an average rate across all ratepayers of the new Council which, with all other things being equal, will mean the residents of Fermanagh paying higher district rates and the residents of Omagh receiving a higher district rate cut".

Of course, the figures are based on this financial year's rates and do not take into account the many variables that may be considered in striking a rate for the new Council.

But whatever way you look at it, it is going to be pretty hard to square this particular circle. Omagh District Council's rate is higher than Fermanagh's rate. It has more debt than Fermanagh.

The report suggests that consideration should be given to the district rate transition arrangements for both "balance sheet losers" and "district rate losers".

It also suggests to address convergence "unfairness" that in the new Council, ratepayers in the former Omagh area would have rates frozen while the Fermanagh rate payer's new rates would "transition" over a three year period to the higher rate.

This doesn't sound like a solution. It just sounds like it would simply put off the unpalatable inevitable of much higher rates for the people of this county.

Minister Edwin Poots has talked about the "significant benefits" this reorganisation will bring to the people of Northern Ireland when Councils merge in May 2011. He talks about projected savings of £436 million over 25 years.

What the Fermanagh ratepayer wants to know is -- is Government really going to stand over a huge rates hike in this county over the next few years and beyond? And if the option of setting an average rate as described is not going to happen, just how will a rate be struck for a joint Council that brings such different finances to the table?

Now is the time for answers.

This article appeared in Impartial Reporter 18 Feb 10

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