Merger with Newry could ‘cripple area’

Merger with Newry could ‘cripple area’

30 January 2013 - by BY DAVID TELFORD

LOCAL politicians have warned the cost of Down Council’s proposed merger with its neighbour in Newry and Mourne could

financially cripple ratepayers, if the Stormont Executive doesn’t finance the move.

Both councils are to merge as part of sweeping local government reforms under the review of public administration. Twenty six district councils in Northern Ireland will be slashed to just 11.

The estimated cost of Down’s merger in 2015 with Newry and Mourne is £7.6m but the Executive is only prepared to pay £1m towards the cost of the exercise. That leaves Down and Newry and Mourne councils facing a bill of £3.3m each.

Local politicians are deeply unhappy at the Executive’s insistence that it won’t pay more and agreed on Monday night to write to the leaders of the Province’s major political parties, asking them to ensure the Stormont administration provides more cash to finance council mergers.

Councillor Dermot Curran said local politicians don’t want to see increased financial burdens placed on the district’s already hard-pressed ratepayers.

He also expressed concern at recent comments attributed to Stormont Finance Minister Sammy Wilson who said the savings the council mergers will generate should pay for the cost of the exercise.

“The expected savings will take many years to realise which means the upfront costs of the merger will have to be shouldered by our ratepayers.

If the Executive stands firm and does not provide the money to finance our merger it will place an intolerable burden on Down Council and its ratepayers,” he added.

Councillor Eamonn O’Neill said it’s unfair of the Executive to “wash its hands of the issue” and insist it won’t pay for the cost of council mergers.

“The mergers will produce savings, but it will be 15 or 20 years down the line before they are realised. The Finance Minister expects local councils to borrow the money to pay for the mergers but this is most unrealistic as the costs involved with Down’s merger with Newry and Mourne are £7.6m. Financing this alone would represent a 35 per cent increase in our district rate,” he revealed.

Councillor Robert Burgess said the review of public administration will hit ratepayers hard and claimed none of the Assembly’s 108 members are “standing up for local councils” and the financial help they need to oversee their proposed mergers.

Councillor Patrick Clarke warned the cost of local government reform must not be passed on to ratepayers, and councillor Cadogan Enright said if Mr. Wilson wants to drive through the review of public administration he should pay for it. He also warned the only loser in a stand-off between Down Council and the Assembly will be the district’s ratepayers.

Councillor Stephen Burns said the reduction of district councils “unfortunately comes with a cost” and agreed that predicted savings will take some time to realise. He said there should be up-front financing of the review of public administration process.

“Councils are best placed to know what they need in order to make the transition. They feel they have not been listened to and ignored within this debate. Sinn Fein is supportive of local councils getting monies to assist with the proposed mergers.