There will be no change to the tax in Waterford in 2020 which will stay the same for the third year in a row.
It's currently two and a half percent above the base rate.
A local authority may vary the basic rate of the local property tax within its own area by a maximum of 15%.
This means that Waterford City and County Council could either increase or decrease the rate of LPT in 2020 by 15% of the basic rate.
The Council majority, made up of Sinn Féin, Independent, Labour and Green Party councillors, voted for the status quo to remain.
Fine Gael and Fianna Fail voted for a 5% cut.
Sinn Féin Councillor Conor McGuinness said the fact that Fianna Fail and Fine Gael are in a minority on the council is obviously causing them distress.
He said yesterday FF and FG used the council chamber to play the worst kind of politics. "Their proposal was not a reasonable one and flew in the face of the
evidence presented to them and also flies in the face of FG / FF policy across the state and over the last decade on Waterford City and County Council."
Fine Gaels John Cummins says Sinn Fein have in the past proposed a 15 percent reduction when they were in opposition
but in this case could not support a five percent reduction.
He says the Council could afford the cut because they no longer have to fund pay agreements for staff.
"In the last two years we were faced with trying to fund pay increases for staff under the public service stability agreement from our own resources and this is no longer
the case, it's being funded by central government, so we felt that now was the time to try and put some additional money back in the pockets of Waterford
householders, particularly in light of the challenges Brexit poses for our local economy.
STATEMENT FROM SINN FEIN COUNCILLOR CONOR MCGUINNESS
A majority of Waterford City and County councillors have voted for no increase to the Local Property Tax (LPT) for 2020. The Council majority, made up of Sinn Féin, Independent, Labour and Green Party councillors, voted for a freeze on the LPT rate for the coming year. Council Chief Executive Michael Walsh had sought a 10% increase.
Sinn Féin group leader Cllr. Conor D McGuinness said:
"We voted today for a freeze on the LPT to give working families and homeowners stability and certainty in 2020. The LPT is a tax on people's homes and Sinn Féin believe it should be abolished in favour of a fairer and more progressive system of funding local government. Funding for local authorities has been decimated by successive Governments and this needs to be addressed as a matter of urgency. Hitting hard pressed families with another increased bill isn't the solution.
"We are weeks way from Budget 2020 and from the possibility of a no-deal Brexit. We are in uncertain times internationally. Low and middle income earners in Waterford deserve stability and certainty when it comes to their finances.
"The annual budgetary process for Waterford Council is underway. Sinn Féin will be seeking value for money and we work with management to address non payment of rents and rates. We will advocate for a budget that improves local amenities and safeguards services."
STATEMENT FROM FIANNA FAIL COUNCILLOR EDDIE MULLIGAN
At Tuesdays Local Property Tax meeting, Fine Gael, Fianna Fáil and independent Seamus O'Donnell proposed a cut in the LPT by 5%. This was rejected by the Sinn Fein alliance comprising of the Labour Party, Green Party and Independents Joe Kelly, Joe Conway, Davy Daniels, Donal Barry and Matt Shanahan. Instead this alliance dubbed the 'regressive' alliance by Fine Gael Councillor John Cummins voted to vary the rate to plus 2.5% above its set base rate.
During the course of the meeting it became apparent that wage increases under the public service pay agreement which were previously funded by councils is now being funded by central government. Cllr. Cummins speaking on behalf of Fine Gael said "as this money is no longer required this year, as it was in previous years, it is only prudent given the precarious nature of the local economy with Brexit on the horizon that we introduce a 5% reduction in the LPT in order to put money back in peoples pockets".
He added "I find it astonishing that parties like Labour, greens and Sinn Fein, propped up by independents voted against our reduction and instead voted for the LPT to go to +2.5% of the set base rate for no specific intended purpose despite it being stated Sinn Fein policy that they will lower the property tax to its lowest amount (minus 15%) until such a time as that they can abolish it".
Cllr. Cummins said "Sinn Fein in particular are leading this left 'alliance' and they came into the council chamber 4 out of the last 5 years proposing a 15% cut in the LPT and the second they got in control of the council they turn around and walk away from their promise to vote for a 15% reduction, its hypocrisy at its finest. Its going to be a very long five years if this is what the regressive alliance do with their first monetary decision on the council".
On behalf of Fianna Fáil, Cllr Eddie Mulligan endorsed the Fine Gael proposal stating that given the clarification received in light of the level of wages now funded by central Government, it was no longer prudent to expect the public to continue coughing up in financial local authority conditions described as 'reasonably stable' by the CEO.
Cllr Mulligan elaborated that whilst he emphathised with the Council challenges of meeting the demands of the public over 10/11 challenging years, the private sector has had to bear the financial brunt and cut it's cloth to measure, to survive.
Engaging with the people on the doors, leading up to the Local Elections, Fianna Fáil Councillors have listened to the people of Waterford on how hard pressed they are financially. This has been confirmed by the recently released Central Statistic Office figures showing Waterford household incomes being 13% below the National average.
Given the house hold financial challenges faced in Waterford and the fact that House Prices rose by 7% in 2018 (Daft) and are forecasted to rise by an additional 10% (REA) by end of 2019, and in light of the stable financial situation of Waterford Council it is appropriate that Fianna Fáil would support the 5% Local Property Tax Reduction proposed and when the budget is being reviewed, the 'cloth must be cut to measure', to make up shortfalls.
According to Cllr Mulligan, 'the Sinn Fein led alliance who control Council funds had an opportunity to remove this extra 2.5% LPT tax, in place for the last two years, and they failed to deliver for the people that elected them on their promises.'
