Service cuts likely in Tipperary if fuel pressures continue, council warns
Council services in Tipperary will have to be cut if fuel pressures don’t ease.
That was the warning sounded by Tipperary County Council’s chief executive Sinead Carr at the April meeting of the local authority.
Ms Carr addressed councillors remotely after the meeting was moved online due to fuel protests and shortages, and said that like any business, the council were feeling the pinch from the increase in fuel costs.
"Since the outbreak of conflict involving the US, Israel and Iran, we have had some discussions at management team level in relation to the impact on that, particularly in the context of the increase in fuel costs.
"The council here is no different to any other business in terms of the impact that has had on our operational costs,” she explained.
"In addition to fuel costs, there is very likely to be an increase in inflation, that might take a bit longer to work through the system, but that will also certainly impact us,” Ms Carr added.
The chief executive said that a presentation was made to the council’s corporate policy group (CPG) advising them that action might be taken if and when it’s needed to protect against rising costs.
"We’re not taking any immediate action as of yet, but I have asked all of the directorates to look within their own area, to potentially look at an additional increase in inflation of 2pc, and to manage their budgets accordingly,” Ms Carr said.
"Also within the context of roads, to look at the potential additional costs from a fuel perspective of anywhere from €250,000 to €400,000 if fuel increases. That’s a range of between 10pc and 33pc of an increase on fuel costs,” she explained.
"If we are likely to see those sort of costs going through the year, we’re looking at having to cut back on services in the context of between €250,000 and €400,000.”
Ms Carr said that any potential cuts would most likely take place in the second half of the year if they are required, and said that she and her team were conscious of not exceeding the budget for the council that was adopted by councillors in December.
"We’re actively managing the situation, plans are being drawn up and that we will come back to both the CPG and to the full council in the event that a ceasefire doesn’t hold or that no agreement is held in relation to the ongoing situation in the Middle East,” she concluded.