Elected members of Louth County Council last night voted against increasing the Local Property Tax in the County by a margin of 22 against and just four in favour.

One of the four Councillors in favour of an increase is Labour’s Pio Smith who had argued that the money raised would have allowed the Council to spend up to €20million on projects in Drogheda.

Talking to Drogheda Life last week Cllr. Smith pointed out that people living in Council owned homes are not liable for LPT and that almost half (48%) of those that are would have faced an increase of just 26 cents per week.

“I fully understand that we all hate taxes, but the money paid by Drogheda households would be spent in Drogheda and this money would have a massive positive impact on our town.”

Speaking this morning Cllr Smith said he was disappointed but not surprised at the vote. “Perhaps it is too close to the election and people didn’t want to stick their necks out” he said.

“I fully understand that we all hate taxes, but the money paid by Drogheda households would be spent in Drogheda and this money would have a massive positive impact on our town.

However, Cathaoirleach of the Council, Kevin Callan welcomed the decision not to increase the Local Property Tax. He said that he fundamentally disagreed with a system that does not provide adequate monies from central government to fund local authorities at a time when the economy is apparently awash with surpluses and funds.

“My opinion and my position as a local elected representative is that people and households pay enough in general taxation and that this is an additional taxation. No matter how small or large the amount, the principle I hold is that this is additional tax. I have taken this position since the Local Property Tax came in.

“We need to move to a point where the State is properly funding our councils, not just in Louth but across the country. It is utterly unacceptable in my view that we are required to turn to tax households that are already paying USC amongst many other taxes.

“There is no point shovelling out monies in the budget and a week later Councils having to try to raise additional funds for basic services.”

The proposal to increase the LPT for 5 years was defeated with 22 Councillors voting against, four in favour and three absent.  The four in favour were Labour Councillors Pio Smith and Michelle Hall, John Sheridan of Fianna Fail and Marianne Butler of The Green Party.