An unexpected conflict arose at the October meeting for Waterford’s Plenary Council during what seemed to be a routine discussion developed into a cross-party fight.
A change in legislation allowing Waterford Council to raise their property tax rate, meant Chief Executive Sean McKeown was required to give the elected members the option. Waterford Council agreed a 15% LPT above the base rate in 2024 and fixed that rate for a duration of five years.
“To cut a long story short, he said, “I am recommending as agreed with the elected members in October 2024, that the rate of the LPT for this council would remain at the rate that was agreed for the full term of this council.”
ANNOYANCE
This was met with mumbles of agreement and the issue seemed on its way to passing without incident until Cllr. Donal Barry sought permission to speak.
“I’m proposing that there is no increase on the Local Property Tax, this year on the base rate,” he said.
This comment clearly irritated some of his fellow councillors, with Mayor Liam Brazil pushing back, saying: “I thought there was an agreement in place there a few years ago at the five year plan that this was done and dusted. I can’t see why there are any questions on it today. There were no questions on it last year. Only for the change in legislation it wouldn’t even be on the agenda here today.”
After this Cllr. Pat Fitzgerald said it was very important to understand that although the rate of taxation will stay the same for this Council it could go up to as much as 25% above the base rate in the next council.
A number of councillors called out in frustration at these comments, with Mayor Brazil saying: “Sure we don’t even know who is going to be here for the next Council”.
Cllr. Seamus Ryan said, clearly joking: “Is Cllr. Fitzgerald proposing 25%?”, which his colleague denied hotly and drew laughs from some other members present.
Eventually, Councillor Barry explained he was proposing that Waterford Council remove the adjustment which sees them take a LPT rate 15% above what is strictly required.
“I do wonder where Councillor Barry is going to fill the gap? asked Cllr. Tom Cronin. “Where’s he going to find that €1.6 million?”
To which Cllr. Barry replied: “If you were listening you would have heard I said local government should be properly funded.”
THE BASE RATE
Counties with very high property value adjust their LPT to be below the base rate. In 2024 Waterford Council raised their Local Property Tax from 10% to 15% above the minimum rate, which they say is necessary to fund rising costs of local services and maintaining local communities.
When Waterford Council found this increase to be necessary, Councillors within The Pact voted in favour, but sought to sugar the pill and ‘providing greater financial certainty’ by agreeing not to raise the LPT again for the full five year term of the Council.
The re-opening of the LPT debate at the first, and perhaps every opportunity, agitates members of the voting Pact, who seem to view it as an attempt to generate negative publicity on an issue that was settled two years ago.
Councillors in opposition argue that the LPT is fundamentally wrong and the Council makes the matter worse by increasing the base rate by 5% more than necessary.
In the end it was passed comfortably with 18 voting in favour and, officially, seven against, made up of Sinn Féin and some Independents, although there was some confusion as to who abstained on the side of the opposition.
With that, after much debate, the agreement made in 2024 was agreed again.
AARON KENT
Funded by the Local Democracy Reporting Scheme
