Micheál Carrigy (Fine Gael) | Oireachtas source

I welcome the Minister of State. My Commencement matter relates to the loss of commercial rates as a result of the closure of Lough Ree power station in Lanesborough in 2019, with which the Minister of State will be quite familiar. It has been a major blow to employment and local economic activity in the regions of County Longford, Offaly and Shannonbridge, which suffered a negative impact from the loss not only of commercial rates but of the plants themselves, as well the potential loss from suppliers of the plant, including Bord na Móna. Lough Ree power station paid a total of €1.2 million in rates annually to Longford County Council. It was the single biggest ratepayer in Longford and accounted for 15% of the rate base. To sustain a loss of that magnitude in one year and to compensate on the income side, we would need to pass on an increase of 13.5% in rates to balance the books. I do not think that would be acceptable.

Indeed, we were the first county in Ireland to vary the local property tax, LPT, rate upwards, at 15%, a decision made when all local authority members in Longford came together to maximise potential funding for other projects where matched funding was needed for projects throughout our county. We ring-fenced the 15% increase for the local authority to allow us to apply for projects and ensure we have matched funding for them.

I acknowledge the efforts of the Minister of State, through his Department. The council successfully resolved this critical issue for the financial year 2022. Without that support, there would have been a severe impact on the ability of the council to respond to the challenges it faced. It has meant the council has been able to operate with a level of certainty in what has been a very challenging year. Businesses in the county are recovering at a slower pace than many urban settings. Coming out of Covid-19 and additional challenges facing the sector, such as inflation and the Ukrainian humanitarian crisis, compound the impact of the loss of the guaranteed income from the Lough Ree power station. However, the support the Department has given over the past couple of years has allowed the council to continue to respond with confidence, undertake the regeneration projects we spoke about, invest in our housing stock and continue to support communities and businesses throughout the county.

However, the financial jeopardy caused by the decision to close the power station and the resulting loss in rates remains a difficulty for 2023, 2024, 2025 and 2026. I was elected to the House in 2020 and in September 2021 I sought a guarantee. I have asked for a commitment from the Department and Government to provide certainty to Longford County Council until 2026. The just transition commissioner, Kieran Mulvey, stated two and a half years ago that:

It would be extremely unfair in circumstances over which they had no responsibility and for a decision which was not expected until 2027 that they should be burdened with this sudden loss.

I recommend that an urgent engagement takes place with the Chief Executives of the councils concerned with the funding Departments so that a suitable emergency arrangement can be agreed to alleviate the rate losses over the period 2021-2026.

While we have successfully received the rates every year, the decision is not made until the end of September. Our department of finance in the local authority is putting together financial projections for the year ahead. The situation creates uncertainty.

I wish to take this opportunity to wish our head of finance, John McKeon, well. He has been ill for the past number of months. He is a prudent financial officer in Longford County Council. We look forward to seeing him back in the chair in the finance sector of Longford County Council.

We should get, and need, certainty today. I do not want to come in here next year or the year after to look for funding to be put in place.