Tipperary County Council drawing up plan of savings to respond to Iran war inflation spike
The Council's CEO Sinead Carr addressed the local authority's elected members on the contingency plan at their April meeting
Tipperary County Council is drawing up a contingency plan of cuts and savings to deal with an anticipated inflation spike arising from a surge in fuel costs if the US/Israel-Iran War isn't soon resolved.
The Council's CEO Sinead Carr announced the local authority is working on this plan at the April meeting of its 40 elected members last week that was held fully online to save on fuel costs for councillors and officials.
The Council is expecting an increase of between €250,000 - €400,000 in costs, mainly in fuel price rises. Ms Carr indicated any plan of cuts and savings would come into effect from June onwards.
Addressing councillors at the end of the meeting, she said the management team had engaged in discussions since the war began in relation to its impact, particularly the increase in fuel costs. She noted the Council was no different to other businesses in relation to the impact of fuel costs on its operations.
She explained the inflation increase will take slightly longer to make an impact and acknowledged it will also affect commercial ratepayers.
Ms Carr stressed the Council wasn't immediately taking action. Instead she has asked the directors of services to look at savings based on a potential increase of inflation of 2.5%, particularly in roads, and to look at an increase in fuel costs of between €250,000 and €400,000, which ranged from a 10% to 33% increase in costs.
“We are looking at that range of having to save and cut back. If we have to do those cuts, we have to do them from June on. We want to be in a position to manage that and not exceed the budget adopted by yourselves.”
She added: “We are actively managing the situation and that plan is being actively draw up and will come to the Council in the event the ceasefire doesn't hold up in the Middle East.”
Ms Carr's decision to address councillors on the contingency plan was made at the Council’s Corporate Policy Group (CPG) meeting on Friday, April 10. The CPG meeting was addressed by the Council’s Head of Finance Mark Connolly about the war’s potential impact.
Labour Cllr Fiona Bonfield asked Ms Carr if the projected €250,000 - €400,000 increase in costs related to the roads section only.
Ms Carr responded that on the fuel side 60% of the costs increase would impact the Council's machinery yard and general road works.
The remainder of the impact would be on Tipperary Fire Service, the Council's corporate buildings, road sweeping and housing maintenance.
Ms Carr stressed the contingency plan is being drawn up “to get ourselves ahead of” any inflation problem.
“We are hoping this issue will be resolved and we get back to normal. We might be in a position where the Government might help local authorities as well.”