Back payment of rates ‘catastrophic’ for people
Thursday, 23 October 2008
THE back payment of rates to the Ministry of Defence could prove "catastrophic" for the people of Armagh City and District, local Ulster Unionist Councillor Jim Speers has warned.
“Armagh is going to be one of the worst hit areas," he told the Gazette this week, as the full implications of the legal ruling on rates revaluation became clear.
Councillor Speers explained that, in the case of vacant commercial properties and those owned by the Ministry of Defence - including Drumadd Barracks - some 50 per cent of the full rateable value was to be paid.
But he said that the MoD had argued successfully in court that its vacant properties, which had no alternative use, should not have to pay up.
“When the calculations were done for last year, they were done on the basis that that 50 per cent would be available," said Councillor Speers. "But now we are going to have to pay that back for the last year and must do without it for next year.
“The people of Armagh are really going to feel the impact of this on their rates and on future services. We are one of the local councils that will be particularly worse off as a result of this legal case and people should brace themselves for the financial implications.
“The council will continue to operate on the basis of trying to provide the best value for money for the ratepayer, as we have always done. But it will be a matter of tightening our belts more than ever before.
“We will, of course, be seeking transitional relief, in the hope that some of the fall-out from this crisis can be deferred, given the fact that we - and others - were operating on the basis of advice given and no-one could have predicted the catastrophic circumstances which awaited us.
“People should know that we will work together to do all in our power to try and lessen the impact, but they must be prepared for the worst".
Sinn Féin's group leader on Armagh Council, Cathy Rafferty, said it was "outrageous that the British Ministry of Defence are to receive yet more money from local budgets as part of a rates rebate".
She went on: "This financial mess, which sees local budgets being decimated in order to provide a rates rebate to the British MoD, is not of local councils' making. The Land and Property Service, which falls under the Department of Finance and Personnel, has made a series of mistakes in calculations which have affected other organisations, such as local councils' budgets, significantly.
"Earlier this week, Limavady Council were ordered to pay almost £400,000 in a rebate to the MoD, severely depleting their budget.
"The question is now how many local councils are going to be forced to fork out excessive amounts of money to the MoD in rates rebates.
"Nigel Dodds, as Minister of Finance, needs to come out clearly and say what total amount the MoD are set to receive in terms of rebates from all the local authorities and the Assembly.
"At a time when the North's budget is being scrutinised for savings - and there are massive pressures on essential services and local households to make ends meet - such an amount of money being granted to the MoD is a disgrace. It is local people's services that will ultimately be affected and have to be reduced as a result of this".
SDLP Councillor Thomas O'Hanlon - who chairs the council's Public Services Scrutiny Committee - has called on the Finance Minister to ease the rates burden on local people.
He said: "Let there be no mistake about it, the downsizing of the military estate is welcome by communities on the ground. This was envisaged under Patten. However, behind closed doors the MoD and Land and Property Services have been negotiating revaluations and refunds from councils to the detriment of local ratepayers and local government.
“We are in the final years of these councils. The Northern Ireland Executive must step in and save local councils. The Executive can and must underwrite these amounts if we are to protect services locally. We need to see an end to the huffing and puffing between the DUP and Sinn Fein at Stormont and we need the Executive to meet. This must be brought to the highest level of government. What is most ironic to me is that the Department of Finance and Personnel are talking about the rating of empty homes and business premises, and yet letting the MoD off the hook. This is hypocrisy and must be challenged all the way".
