Local councils budget cut 'a cold shower'

The five per cent cut in the local councils budget was yesterday described by Labour spokesman Chris Cardona as a "cold shower".

Councils are in for a hard time to keep within their budget even because a number of them had already made plans as to how they were going to spend the allocated funds and were not planning for a cut, he said.

Dr Cardona said the five per cent cut did not only mean that some councils would end up with a deficit but it also brought a lot of uncertainty as to how the councils would run their affairs. "Instead of helping local councils the government is burdening them with financial problems," he said.

The decision means a cut of over Lm500,000 for the local councils around the island and Dr Cardona said this would have a very big impact on the councils, especially the smaller ones which will only have enough funds for their recurrent expenditure and would not be able to invest in new projects.

He said that this week's cut meant Lm5,000 less for the Zejtun and Birzebbuga councils, Lm6,000 less for the Santa Venera and Zurrieq councils, Lm3,300 less for the Tarxien council, an Lm8,000 cut for the Siggiewi council and a cut of Lm9,000 for the Qormi council.

Dr Cardona criticised the fact that the government did not consult the councils before making the decision, the second cut in the span of a few months. He explained that the increase in VAT in the last budget meant an extra financial burden on local councils.

He said certain projects needed planning and more than a year to be completed. This latest decision meant the councils would not be allowed to do this.

Dr Cardona said the budget cut went against what then Prime Minister Eddie Fenech Adami had said in 1998 that the government should give more funds to local councils. Dr Cardona recalled that in the 1998 electoral manifesto the Nationalist Party had said that a PN government would increase both the funds and the duties of the councils.