A PROPOSAL for a zero per cent rates increase for the coming financial year didn’t make it to a vote in the Fermanagh and Omagh District Council chamber, despite being formally seconded, after the Chief Executive declared it “incompetent”, from the perspective it was not achievable.

In the course of discussions, members were also advised against using the word profit when describing Council income.

Independent Councillor Eamon Keenan said, despite an extremely difficult year: “I’m confident our Council is financially very stable.”

He added: “Last year it made a profit of £3.7m during the pandemic, although I understand there are a lot of variables contributing to this.

“Nonetheless, we did turn a profit. We have £16m liquid reserves, and when we add the return of the £6m in loans we are due to be repaid this year, that leaves £22m.”

He continued, achieving a zero per cent rates increase this year would cost £1.5m, and “with that in mind, and the fact a lot of people in the community have suffered financially and socially during Covid, I formally propose a zero [per cent] rates increase, combined with zero cuts to services and projects, and zero cuts to workers’ hours, terms and conditions”.

The Director of Corporate Services and Governance, Celine McCartan, advised the term "profit" was not appropriate in the context of a local government body and rejected £3.7m could fit this description.

She said: “We’re not here to make profit but to use money raised to deliver services and invest in the district.

“We have a surplus at the moment, but we are not at the end of the [financial] year. We have funded the Covid reserve yet although we have the plans to do that, and we will have a surplus as we move forward.”

She continued: “The loans form part of the cash reserves … It is our recommendation it would not be possible or sensible to have a zero per cent rates position, as it would result in some cuts to services, projects and ultimately to jobs.

“Those aspects can’t all be delivered together, I’m afraid. It’s about properties, and trying to strike a balance.

“That’s why we have put the hours in to try to do and present [to members].”

However, Councillor Emmet McAleer, Independent, seconded the proposal, stating: “Given the exceptional year and the difficulties and financial hardships, I think it definitely is possible we strike a zero [per cent] rate this year, without affecting our service provision … There is a lot of surplus money there.

“We have loans coming back in before the end of the Summer.”

But Chief Executive Alison McCullagh told members: “The proposal in the technical sense of the word is incompetent, as it is not something we can honestly say can be achieved.

“Zero per cent [rates] will have cuts and definitely result in impaired service provision.

“We would have to look at staffing implications, and it would certainly impact on capital and projects.”

She concluded: “I must advise that, as a proposal, [it] cannot stand.”

Chair, Councillor Diana Armstrong, said: “That being the case, I rule the proposal out of order.”