FG tells council not to raise rates

FINE GAEL has ordered its members on Dublin City Council not to raise commercial rates or charges in the council's 2009 budget to avoid penalising consumers and small businesses.

Dublin city manager John Tierney has said he intends to increase rates, but that the increase will be lower than inflation.

However, the city's budget must be passed by the majority of councillors and Fine Gael environment and local government spokesman Phil Hogan said he had instructed councillors not to raise the rates.

"It's anticipated that local government will face reductions of 13 per cent in real terms in financial support from the State in the year ahead. However, Fine Gael believes the small business sector and hard-pressed consumers should not have to pick up the pieces for the financial mess created by Fianna Fáil governments in the last few years."

Minister for the Environment John Gormley had already presided over cuts in local government services in 2008, Mr Hogan said.

"It would not be acceptable for Minister Gormley to expect local authorities to take the easy option of raising taxes and charges to balance the books to shore up Government incompetence and waste."

Fine Gael councillor Naoise Ó Muirí has warned the Government that the poorest households in the city must not be penalised by tomorrow's budget.

Mr Ó Muirí was speaking after it emerged that the city council's tenant rent arrears had increased by 60 per cent in three years.

While the number of accounts in arrears remains at about 15,000, the total arrears has risen by nearly 60 per cent from €9.6 million to €15.2 million and average arrears have increased by 54 per cent from €696 to €959 per household.

"Dublin City Council will have to tread carefully down that difficult line between ensuring that tenants keep their bills paid and ensuring that those who struggle to make ends meet do not suffer excessive hardship."

Some households were facing into the economic downturn with debts of more than €30,000 to the council, he said.

"These figures should also sound a warning note to the Government to carefully target any proposed taxation changes in the budget in order to minimise the impact on the poorest in our society."

Meanwhile, Fine Gael spokesman on Enterprise, Leo Varadkar, said yesterday the Government's claim that the assets of Irish banks exceed their liabilities by €80 million is likely to be incorrect, as it is based on outdated figures.

He said Minister for Finance Brian Lenihan had informed him in response to a Dáil question that the estimate was based on the end-2007 published accounts of the credit institutions concerned.