I wish to share time with Deputy Allen. The Government is forcing local authorities to increase commercial rates this year by up to 10% and waste collection charges by up to 300%. However, when everything is considered there is still a shortfall of approximately €0.5 billion in the Estimates. Each household will pay up to €400 next year for refuse collection. Small businesses, under pressure due to massive increases in insurance costs, will again be hit with significant increases in rates. Farmers, pub owners and restaurateurs will have to suffer increased water charges. The farming community must survive more increases as prices for its products continue to decline and it cannot pass on the increased costs. Rates hikes and soaring insurance costs will be passed on to the consumer, thereby increasing inflation at a time the Government is calling for wage restraint.
Cork County Council will need an extra €22 million to meet the wage and salary increases agreed by central government. The deferred PPF current round will cost €4.1 million, the initial payment under benchmarking will cost €10.3 million and additional staff as a consequence of the Government's decision to introduce better local government will cost approximately €8 million. This does not take into account increases under the new national agreement.
In addition, a waste levy of €3.2 million must be paid to central government. This will mean that the council will run a deficit of €37 million next year. which equates to the total rates support grant that it received from the Government last year. What services does the Government want local authorities to cut because of its unwillingness to compensate them for wage increases? Local authorities will be forced to cut back on their housing programmes and reduce spending on county roads, water and sewerage schemes, fire services, library services, town and village renewal programmes and all services needed by citizens on a day-to-day basis.
The Government must take responsibility for these cutbacks. The Taoiseach and the Minister for Finance must fund local authorities to implement benchmarking, better local government and the new national wage agreement. There is no point in Fianna Fáil trying to play Government in Opposition locally on this issue. Cuts at local level will be the result of cuts in local authority funding by the Government and no matter how much Fianna Fáil Deputies and councillors protest locally, the bottom line is the cuts would not happen if it were not for the total mismanagement of the economy by the Government, which is kept in power with their support.
Every Fianna Fáil Deputy and councillor and their PD collaborators will be held responsible for these cuts. The Government cannot expect to fool all the people all the time.