Five per cent cut in local council budgets

The government has decided to cut council budgets by five per cent for the financial year 2004-2005, drawing the wrath of the Local Councils' Association.

The association has asked for an urgent meeting with the Home Affairs Minister and the Department of Local Councils over the matter.

Association president Ian Micallef yesterday informed local councils the association had not been consulted before the ministry decided it would cut their spending power yet again.

Before last year's budget, the government had said it was going to cut the budgets of all government departments, including councils, by 10 per cent. But after talks between the Home Affairs Ministry and the Finance Ministry it had been agreed that local councils should only cut back on their spending allocation by five per cent.

Contacted over the matter, Carmelo Mifsud Bonnici, Parliamentary Secretary in the Home Affairs Ministry, said he needed to consult the minister and that the association would be invited to a meeting soon after.

"Our duty is to ensure that local councils end up with credit and not debit at the end of the year," he said, adding that the government was not out to hinder the work being done by local councils in any way.

He said recent laws, such as the Internal Audit Act, had strengthened local councils, whose work was very important.

Apart from the government-allocated funds, local councils have other sources of revenue, mainly from wardens' fines.

The "weakening" of local councils, linked to their reduced spending power, was yesterday criticised by the opposition.

Labour spokesman Chris Cardona said the decision went against the spirit of the law on local councils and against the European charter on local government.

The councils had already projected their goals for their financial year, which ends next March, with the previous budget in mind and a reduction of five per cent only served to set them back, Dr Cardona said.