£10m debt could favour Omagh ratepayers
Thursday, 27 November 2008
by Stephen McKiernan.
OMAGH ratepayers could come out on top in a council amalgamation with Fermanagh, after figures revealed that the local council is in the red by £10.4 million to Fermanagh's slimline £2.5 million.
Nonetheless, Omagh remains well below the average of £17 million, according to Environment Minister, Sammy Wilson, with the majority of their debt not due to be repaid for a minimum of 12 months.
With Omagh District Council and Fermanagh District Council due to amalgamate in 2011, Omagh ratepayers could theoretically see their rates drop, as Fermanagh has one of the lowest debts in Northern Ireland.
A similar story is found in Strabane, who with just £2.5m debt will be saddled with Derry City Council's £21m upon amalgamation.
Omagh's debt is lower than many other district councils of similar size and population. For example, Ballymena, Coleraine and Lisburn have debts of £30m, £27m and £21m.
Fermanagh district councillor, John O'Kane, said the big winner from the debt announcement will be Omagh's ratepayers.
“It's a concern. Fermanagh District Council has a quite low debt and Omagh's is much higher. Fermanagh's assets are also much greater in value as well. Ratepayers in Omagh will be paying less and ratepayers in Fermanagh more. There's no doubt about it, the nett beneficiaries of the situation will be the ratepayers of the former Omagh District Council area. They will have a lower domestic and non-domestic rate, there's no doubt about that."
Difference
Likewise, Derg councillor, Derek Hussey, who is an opponent of Strabane joining with Derry City Council, said the large difference in debts could see a higher rate for Strabane ratepayers after 2011.
“Strabane council have been criticised in the past for not having particular facilities and have not been prepared to go into the situation of acquiring debt to fund facilities whereas others have been, Londonderry in particular. So, the responsible attitude of Strabane District Council is being negated by the irresponsible attitude of Derry City Council.
“I suspect that those in Strabane who will become some sort of Foyle amalgamation, will find themselves perhaps paying a higher rate level than they're used to."
A spokesperson for Omagh District Council said the relatively low debt of £10 million was value for money, stating that the council's assets at £42 million well outweighed the debt.
“Omagh District Council has followed a significant investment plan over the past 20 years and has been proactive and forward thinking in developing facilities and supporting the community to make Omagh a thriving and sustainable community and an attractive place in which to live, work and invest."
The spokesperson also pointed to investment in the refurbishment of the town centre, the new public service building on High Street, Strule Arts Centre and the upgrading of Omagh Leisure Complex.
She also noted huge strides in waste management, with plants in Omagh and Carrickmore making Omagh council area the third best recycling rate in Northern Ireland. She also said that only a £1 million loans was needed for the £11 million valued Strule Arts Centre and the public service building costs are paid by its income.
“In all its undertakings Omagh District Council has invested prudently and in accordance with best practice to achieve value for money, and all new capital projects are supported by the development of a robust business case.
“Where possible, significant levels of funding have been levered down by the council to support infrastructure projects. Therefore, it has been the council's plan to invest in areas where the greatest advantage can be derived in terms of community benefit, whilst attempting to minimise the financial impact on ratepayers."
