‘Sobering’ impact of war

Local services set to suffer

The ongoing war in the Middle East has left Tipperary Co Council needing additional funding in the region of €1 million to deliver its 2026 budget.

Fuel cost inflation has seen the council’s diesel expenditure increase by 28% on last year while its renewable HVO costs are up 22%. The council is facing extra expense of around €400,000 for fuel alone, while an extra €500,000 will be required to deliver this year’s roadworks programme.

In what several speakers described as a “very sobering presentation” on the council’s changed financial outlook, this week’s meeting heard that cuts to services will likely be required in all areas.

Head of Finance Mark Connolly said the council’s suppliers are seeking price increases in the order of 15% in order to cover their own costs. There is no doubt that increasing costs will impact on the countywide roadworks programme, and the council’s ability to collect commercial rates would probably also be affected.

Mr Connolly said each directorate in the council has been asked to try and find €100,000 in savings. All services are being kept under review while the war continues, he said, adding that the local authority is dealing directly with Tipperary’s Oireachtas members in the midst of a situation that could deteriorate even further.

“There’s huge uncertainty,” Mr Connolly said. “We’re trying to be prudent and look at areas where we can make savings.”

‘FAIRLY FRIGHTENING’

Councillors were unanimous in calling for a meeting with the Oireachtas members and seeking extra funding from central government, however unlikely a successful outcome. Describing the situation as “fairly frightening”, Cllr Pat English said the council must at least try to secure additional funding and he believed Tipperary’s national representatives should be able to assist.

Cllr Jim Ryan said the county was already under-funded and the Oireachtas members need to “step up to the mark here”. But he feared the situation facing this country could become a lot worse as a direct result of the war. “It’s not going to end any time soon and could go drastically wrong for us all,” he warned.

Cllr Liam Browne observed that even if the war were to end this week, oil prices would not stabilise for years to come. The recent fuel protests yielded a benefit package for hauliers and agricultural contractors; surely local authorities should also benefit as heavy users of fuel, he reasoned.

The package could be funded from the €9.2 billion surplus that the Government was forecasted to have for this year, Cllr Browne said. Failure to address Tipperary Co Council’s financial situation will also impact on Tidy Towns groups, arts and library services, and the likes of footpath repairs, he feared.

‘SMALL BREAD’

Cllr David Dunne agreed that the council would have to identify ways of making savings but, ultimately, he said central government should find the additional €1 million required, which would be “small bread in the bigger scheme”.

Cllr Seán Ryan urged the local authority to be “aggressive” in going after alternative funding streams such as climate action grants for roads damaged by severe weather.

Mr Connolly assured him that this is being done. While he shared the councillors’ reluctance to cut services, the finance director confirmed that in the absence of additional funding, savings would have to be made in all areas.

The council would consult with its members before any cuts are made, and it might be possible to offset some cuts to next year, but the situation would have to be kept under weekly review, he said.

“Everything we say today comes with a huge pinch of salt because we don’t know what’s going to happen tomorrow in the Middle East.”

SOUNDINGS ‘NOT POSITIVE’

Chief Executive Sinéad Carr said the council would take all actions necessary to remain within budget for the year. But she said people need to be aware that even by maximising savings, it will not be possible to avoid cuts to council services in the absence of additional funding, and the “soundings from Government are not positive”, Ms Carr said in relation to the issue.

She advised that the council’s roadworks programme would be affected; some works planned for this year would have to be deferred to 2027.

Cllr Fiona Bonfield asked about engagement with other local authorities. Others might not require the same level of assistance as Tipperary, which has one of the biggest road networks in the country.

Ms Carr said the council is engaging with its colleagues across the sector. It is still faced with having to take corrective action in order to avoid a budget deficit. “We can’t sit here and hope,” she said.