Rocketing rates prompts U-turn demand on Waste Management Grant

26th January 2006

Elected representatives from across Northern Ireland will today participate in a public protest demanding a u-turn on the recent changes in the Waste Management Grant announced by Lord Rooker. The changes result in the reduction of the overall grant £10m to £7m (30%) with the potential for £5m of this £7m to be reclaimed by central government due to a requirement to spend only on capital projects.

Speaking in advance of the departure to Stormont, Mayor Cllr Lynn Fleming said the action was necessary to show unity in our determination to be heard by Central Government.

“Decisions that have a significant negative impact on the financial abilities of local authorities must be challenged and our concerns will be heard today by Lord Rooker. Government accountability for the impact of this unnecessary decision must be understood by all particularly when the repercussions will be felt by local ratepayers. It is wrong to expect local authorities to pick up another financial tab for a service that is already under-resourced by central government. We are demanding a u-turn in the decision by Lord Rooker”.

The impact of the decision will mean that instead of the Council striking a 4.5% increase for 2006/07, the projected rates increase for 2006/7 will be approximately 6.88%. Town Clerk and Chief Executive, Tony McGurk explained.

“The proposed increase in the local rate reflects the cost of those services that are considered statutory with waste management representing the majority of this expenditure. Through the 30% grant reduction Council has £184,600 less to spend on services in waste management with a further directive to spend what is remaining on capital projects. This puts further pressure on already limited resources.

“The final rates bill must draw a distinction between what we can raise locally to spend on our own services compared to those 19% increase in the domestic rate attributed to central government services. Local robust financial management had resulted in a projected rates increase for Derry City Council in the region of 4.5% for 2006/7 before the Central Government changes outlined above, with almost 4% related to increases that are dictated by obligations that are statutory. To ask local citizens to pay more for waste management due to an ill considered central government decision is scandalous”.

Local Authorities are demanding the restriction on how the waste management grant can be spent during 2006/7 is lifted and are seeking the reinstatement of the 30% cut to the grant. Central Government will also be asked to consider the extension of the grant until 2009.

Further press information can be obtained by contacting the Marketing and Communications Section, Derry City Council. Tel. 028 7137 6504

Notes to Editor:

1. The announcement made to the NILGA Waste Management Committee on 12/01/06 regarding ring fencing of the local government waste management budget, for capital expenditure only is in addition to a cut by £3million on the present year’s allocation. The effect of this ring fencing is that, of the £7million nominally provided by government for council waste management work, Councils will only be able to access £2.1million,

2. When a member of the public pays rates, the bill is split in two. The regional element goes to Northern Ireland Government, and the district element to councils. The waste management grant will have originated from the regional element and because of the restrictions, council will have to seek additional funding through the district rate. The impact of the decision will impact on some councils more than others depending on how the grant was proposed to be spent. For example, a Council can no longer use the waste management grant for staffing costs or promoting recycling.

3. Central Government has already announced that the regional rate will increase by 19% for domestic properties and 3.3% for commercial properties.

Taking into account Government decisions on Waste Management funding, the overall rates increase will be:

• Domestic Properties 13.25%
• Commercial Properties 5.15%

If Central Government decisions are reversed, Derry City Council would be able to strike a district rate of approximately 4.5%, which would result in an overall rates increase of:

• Domestic Properties 11.75%
• Commercial Properties 3.85%

4. NILGA concerns include:

• Impact on the decision on local rates,
• Escalating local rates rises (additional to water charges and the unprecedented 19% regional rates rise, placing an intolerable financial burden on ratepayers),
• A failure by central government to provide a robust civil contingencies framework, and
• An inequitable burden being placed on those districts least able to afford increases,
• Open and fair dealing with local government on all issues,
• The need for a genuine relationship and dialogue,

Ends

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