Tipperary County Council will have to avail of a multi million hand out from other authorities to maintain services next year.
The new authority is one of nineteen local authorities that will have to rely on a subsidy from other authorites and would have to cut services if they wanted to introduce a cut in local property tax.
Tipperary and Donegal will receive the biggest subsidies from the E101m equalisation fund paid into by councils that are in such a strong financial position that they can bring in a 15% cut in the local property tax next year.
Announcing a new scheme for local authority funding Minister Alan Kelly said the E101m top up fund was needed from richer authorities as other councils lacked the tax base to be able to maintain previous levels of service.
Under the new regime only ten councils will be able to introduce a 15% cut in the local property tax without harming services.These councils are the four Dublin authorities,Cork County,Wicklow,Meath,Kildare,GalwayCity and Clare.
They will pay into the equalisation fund which Tipperary will have to avail of Donegal(13.9m) and Tipperary(12.9m) will receive the biggest hand-outs from the equalisation fund.
Deputy Seamus Healy said residents living in ten local authority areas would now look forward to a big cut in their local property tax wh ile in Tipperary no cut would take place in the tax unless “services,which are already on the floor,are slashed”
he accused the government of reducing government funding to Tipperary local authorities by over 20 million Euro or 48% since it came to power in 2011.
“But the situation is even worse than Minister Kelly says. The same funding as last year includes the proceeds of the property tax which the people of the county have paid themselves. That means that the actual government contribution will be even less than the very low level provided this year,” he said.
“Now from October 1, every time you fill the kettle you will be charged for water!
This will extract even more money from the local economy causing further depression and crucifying already hard pressed people. WE are already paying for water and other local services, through general taxation, direct and indirect. Now we are being forced to pay again through these charges for services which have been reduced by government cuts.
This money is being diverted to pay part of the 8 billion per year interest which recent governments have incurred through bailing out billionaire investors in bust banks. Local property tax and water charges are devices to make the ordinary person pay for bailing out banks.
“Minister Noonan has told me that the top 10,000 income earners have 595,000 Euro per year EACH. Minister Kelly and his government should take the money from them and use it to abolish home and water taxes and stop attacking already hard pressed families” said Deputy Healy.