Published: Wednesday, 25th November, 2009 5:00pm

Council's huge income loss to hit services hard

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Officials likely to have €20m less to spend than in 2008

Meath County Council is likely to have to implement major cuts in services to the public in the face of a projected cut in income of over €20 million on its 2008 figures as it tries to balance its books for next year.

Councillors at a private preliminary budget meeting, held on Monday, said that "a very black picture" of the council's finances had been painted by officials.

They complained that it was "near impossible" for the council to make estimates of its spending needs for next year in the absence of details of the national budget due to be announced by the Minister for Finance on 9th December.

The council had a budget of €120 million in 2008. However, this figure was cut to €108m last year, which was subsequently reduced to €102m. The 2010 budget is being pitched at €98 million but this could increase or reduce depending on the allocation of the local government funds after Finance Minister Brian Lenihan gives details of the national budget in a fortnight's time. It is only after 9th December that councils will know their individual allocations.

Although Monday's meeting was held behind closed doors, councillors made it known that the council was already finding it difficult to provide basic services.

They appeared convinced that there would be very little or no increase in rates because of the state of the economy and council borrowing was already at a maximum.

County manager Tom Dowling told councillors that one way of raising €10-€12 million was through the metering of private homes for water supplies, a political hot potato which councillors will be happy to bat away to the Dail.

A 'technical group' in the council, formed by Cllrs Brian Fitzgerald, Seamus O'Neill, Jimmy Cudden, Francis Deane and Joe Reilly, said that it would be "examining in detail" the budget presented to council members on Monday. They intend forwarding a series of questions to officials seeking further explanations of the council's spending and income plans.

Cllr Shane Cassells, whip to the Fianna Fail group on the council, said that their members were currently examining the estimates in detail. "Over the past month, we have received a lot of presentations on the activities of Meath County Council. We will now reflect on where we have spent money and where we believe money should be spent in the future.

"Getting the basics right should be our top priority at the moment - it is what people expect and everything else is just frivolous," he said.

Spokesman for the technical group, Cllr Brian Fitzgerald, said that they were "extremely concerned" about the county's finances.

"It is unfair to ask us to bring in projections on our budget before we know what money we are getting from the Local Government Fund - and that won't be known until after 9th December. It is only after that date that the real debate will start," he said.

He said that what councillors were looking at was a "10 per cent reduction in the Local Government Fund".

On 2009 figures, between the Local Government Fund monies and rates, the council could expect to bring in roughly €345 per head of population. However, Cllr Fitzgerald said that this was far below what other counties could expect to bring in, including Kildare at €412, Dublin city €826, Mayo €521 and South Tipperary €540.

He said that Meath had only half the income of counties like Longford and Leitrim.

"It is going to be extremely hard to bring in a budget and maintain services and that is the reality of it. I don't know how long this can be sustained and we may be facing the need for drastic measures in relation to the services we provide," added Cllr Fitzgerald.