COMMERCIAL ratepayers in Galway city are facing into an increase of 6% for the coming year after a compromise deal was hammered out at a 2025 Budget meeting of the City Council on Friday last.

The Executive of the City Council had proposed a 15% increase in rates but the ruling pact of councillors brokered a compromise deal to put through a budget package of €143 million for 2025.

Apart from the rates increase, other key parts of Budget ‘25 include the use of €2 million from capital funds to bring three major sports capital projects in the city to the planning stage.

There were though sharp exchanges at last Friday’s meeting between members of the ruling pact [made up Fianna Fáil, Labour, Sinn Féin, and two Independents] and those not in the pact [Fine Gael, Social Democrats and other Independents].

Cllr. Clodagh Higgins (FG) described it as the most divisive budget she had experienced, describing it as a real kick in the teeth for businesses across the city. “This is not a 9% reduction in rates – it’s a 6% increase,” she said.

Another Fine Gael councillor, Shane Forde, said that the ruling pact on the Council should have engaged with all of the councillors to come up with a better package.

Cllr. Eddie Hoare (FG) said that the ruling pact on the City Council were trying to sell the 6% rates increase as a positive development when in fact it was a very negative story for many businesses.

However, Cllr. Mike Cubbard, who proposed the amended budget for 2025, said that the pact had taken their time to deliver a balanced deal for the city in 2025 protecting major sports projects and services.

Independent councillor, Declan McDonnell, who seconded the amended budget proposal, said that the budget would resource important projects for the city and allow Galway to make a stronger case for a higher tier of state funding.

Mayor of Galway, Cllr. Peter Keane (FF) said that there were no alternative proposals from the councillors who opposed the amended budget, adding that the package would provide enhanced services for businesses, residents and the two million tourists who visited the city each year.

Before the amended budget was passed at last Friday’s meeting, City Council Chief Executive, Leonard Cleary, said that he opposed the proposals on the basis that the Executive had recommended additional spending of €39 million over the next five years – the amendment would reduce this down to just over €19 million.

Some of the main points of the Galway City Council Budget 2025 are:

■ A 6% increase in rates which will help to fund an additional €19.5 million in expenditure over the next five years. Vacant business properties to be liable for full rates liability.

■ Capital funding to move three main sports projects – Kingston/Millers Lane, Southpark and Renmore – to planning.

■ The delivery of a ‘Night-Time Economy Action Plan’ as well as a ‘Destination and Experience Tourism Strategy’.

■ Funding to be provided for services such as housing maintenance as well as the funding of a new City Council team to tackle the problem of derelict sites [200] across the city.

The amended budget was eventually passed by councillors, 12-4, with one abstention. Those who voted for the amendment were Aisling Burke (SF), Mike Cubbard (Ind.), Frank Fahy (FG), Josie Forde (FF), Peter Keane (FF), Alan Cheevers (FF), Donal Lyons (Ind.), John McDonagh (Lab), Declan McDonnell (Ind.), Niall McNelis (Lab), Terry O’Flaherty (Ind) and Helen Ogbu (Lab). The four councillors who voted against the amendment were Shane Forde (FG), Clodagh Higgins (FG), Eddie Hoare (FG) and Eibhlín Seoighte (Soc. Dem.). Cllr. Alan Curran (Soc. Dem.) abstained.

Pictured: Cllr. Clodagh Higgins…divisive budget. Photo: Brian Harding.