Three-day week under review for council staff

A THREE-day week for hundreds of staff and cuts in basic services are among the options being considered by Dublin City Council to deal with a major funding crisis.

Up to 500 of the council’s 6,500 staff could be asked to go on short-term working under proposals being examined to make up a €20 million shortfall in the budget.

While planning is in the early stages and no decisions will be taken before the end of next month at the earliest, council management is already looking at ways to slash discretionary spending.

Income from business rates, amounting to over €300 million a year, is holding up this year but is projected to fall by 10 per cent in 2010.

However, levies paid to the council by developers have slumped from €65 million to €18 million because of the collapse of the construction sector.

The council’s gross budget is more than €900 million but most of this goes on fixed costs such as salaries.

Officials are now looking at introducing short-term working for some staff in preference to layoffs.

About two-thirds of the council’s budget comes from monies raised through rates, parking charges, rents and water rates, while the rest comes from Government.

Discretionary spending, which amounted to €4.8 million in 2008, is set to fall to just €800,000 this year and further cuts are likely next year.

Costly areas of service provision, such as the fire brigade and housing maintenance, are being examined with “fine-tooth combs” for possible savings, according to sources.

The council is banking on a 6 per cent fall in payroll costs next year as almost 5 per cent of staff are due to retire.

It is also hoping to get €12 million from the second home tax introduced in the last Government budget, the funds from which have been earmarked for local authorities.

It has already cut back overtime severely, under-utilised staff have been redeployed to other duties and temporary staff numbers have been reduced to zero.

While council officials draw up the budget, the final scheme has to be approved and adopted by councillors, who are legally obliged to balance the books.

Fine Gael councillor Ruairí McGinley, who sits on the council’s budgetary committee, said the council was facing tough financial choices for the first time in 25 years.

“It’s early days yet, but it’s clear we’re facing a real challenge.”

The council itself declined to comment, saying it was not possible to release information on the budget in advance.

The budget will come before councillors in late November.

A spokesman said: “2009 was a difficult year financially for Dublin City Council.

“Most economic forecasts indicate that financial difficulties will persist into 2010”.

Last year, the council cut capital spending by €330 million over a three-year period and mothballed a raft of planned infrastructural projects.