Dell fallout: County Council could lose up to €1m in rates
LIMERICK County Council could be left with a funding shortfall of up to €1m in 2010 as a direct result of Dell's decision to move its manufacturing operations from Raheen to Lodz in Poland.
Dell is one of the most significant ratespayers in County Limerick as it contributes upwards of €500,000 a year to Limerick County Council. A similar amount of money is paid in rates to the local authority each year by companies who depend largely on business from Dell.
In its estimates for 2009, Limerick County Council stated it expected to earn €26.5m in rates this year, so the loss of €1m in commercial rates from Dell and other associated companies could account for up to five per cent of the overall rates base in 2010.
Bosses at County Hall say they are closely monitoring the situation and that they will enter discussions with management at Dell in the coming weeks.
"While acknowledging the significant impact of Dell's announcement last week on the local and regional economy, it is much too early in the process to attempt to quantify the impact it will have on rates," said Ollie Killeen, head of finance with Limerick County Council.
Cathaoirleach Cllr John Gallahue said the loss of €1m in rates could have an impact on council services next year.
"It is not ideal. In fact, the whole Dell scene is a horrendous bloody scene, and of course the loss of €1m in rates could possibly lead to a curtailment of services unless more creative ways are found to bring in extra revenue to the council," he said.
Mr Killeen told the Limerick Leader that the full impact of Dell's decision would not be known until the company outlined its plans for the massive manufacturing plant once production ceased next January.
If the plant is left idle, the most likely option is the rates will be "struck out" by the council, leaving councillors with tough choices to make when it comes to agreeing a budget for 2010.
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Tuesday 22 May 2012
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