At a recent meeting of the Limerick County Council, chaired by Mr P. Vaughan, the Council received a significant letter from the Local Government Board regarding their financial situation. The letter addressed concerns raised by the Council’s solicitor, Mr Leahy, about the possibility of promoting a Provisional Order under the Local Government (Ireland) Act, 1898, and the Local Government (Application of Enactments) Order in Council, 1898, to borrow money and clear the current debts.
The Local Government Board responded that such a proposal was not feasible, as they lacked the authority to create a Provisional Order for the purpose of granting borrowing powers to a County Council to cover current expenditure. The Board acknowledged the financial difficulty faced by the Council but pointed out that it was due to reasons other than those mentioned by the Council’s solicitor.
The Board highlighted that, since the implementation of the Local Government Act, the Limerick County Council faced similar challenges as other Councils concerning rate collection, funding for spending authorities, and the maintenance of roads. They emphasized that the financial scarcity of funds needed to be addressed, especially as other County Councils had substantial balances with their treasurers to meet their obligations promptly.
According to the Board, the Limerick County Council should have had a significant sum available at the beginning of each year, in addition to a working balance, thanks to the Agricultural Grant provided by the government in advance. However, the Council appeared to have used part of this money for temporary rate reductions instead of setting it aside for future obligations.
The Local Government Board conducted a thorough examination of the Council’s receipts and expenditures since the enactment of the Local Government Act. They noted that while demands from other spending authorities amounted to about £421,000 over the years, grants from the government added up to £384,000. The Board believed that the Council’s financial hardship was largely due to delayed rate collections and inefficient administration of rate collection duties.
The Board stressed that it was crucial for the Council to strike rates immediately or at the beginning of each financial year. They criticized the Council for allowing collectors to fall behind in their collections and recommended enforcing fortnightly lodgments. The Board also encouraged the Council to impose an increased rate to create a substantial working balance for effective county administration.
In response, the County Council chairman, Mr P. Vaughan, expressed agreement with some of the points made by the Local Government Board. He revealed that he had consulted with Mr Drury of the Audit Department, who believed that the Council could legally strike a rate sufficient not only to cover yearly expenditures but also to create a working balance or reserve fund to meet urgent demands when necessary.
Mr Vaughan acknowledged that the collectors faced difficulties in collecting the rates and suggested measures such as regular processing, providing monthly installments instead of quarterly, and setting up a minimum monthly lodgment. He believed that these actions, along with creating a reserve fund, could help alleviate the Council’s financial difficulties.
The Council discussed various suggestions to address the current financial challenges, including seeking an advance from the treasurer and taking stronger measures with the collectors to ensure prompt rate collections. They expressed optimism that the situation would improve in the coming year.
Limerick Echo – Tuesday 18 July 1905
