Galway’s house market and prices showing an improvement
Up 
House prices in both Galway City and County rose by 1.2 per cent in the first quarter of 2012 despite a national fall of 1.4 per cent, according to a new report.
The quarterly Daft.ie House Price Report found that Galway house prices still remain over 50 per cent lower than at the peak of the housing boom.
The average price of houses put up for sale in Galway City during the first quarter of 2012 was €188,639, while in County Galway, the average figure was €153,950.
Although the average price in both city and county has risen since the last quarter of 2011, they have both dropped significantly over the previous twelve months, the report found. The average price in Galway City fell by 14.7 per cent, while the average county price fell by 17.3 per cent.
A two-bedroom house in Galway cost on average of €125,000, compared with €163,000 in the city, between January and March of this year.
A three-bed house in County Galway cost €162,000, compared to €182,000 in the city, while a four-bed cost €202,000 and €261,000 in county and city respectively.
The difference in price between five-bed homes in city and county was greatest, with a five-bed in County Galway costing an average of €242,000, while a five-bed in the city cost €359,000.
The report shows that nationally, this quarter showed the least change in house prices since the market collapse in 2008.
Despite this, Seamus Coffey, a lecturer in Economics in University College Cork, said there was no sign of a recovery in the market in sight.
“The recovery in the housing market will not be when prices start to rise; the recovery will be when activity starts to rise. With our ailing banks still in no position to lend and the many problems created by the bubble still outstanding there is no sign that this is about to change,” said Mr Coffey.
The battle against bullying steps up a gear with new ‘Forum set up’
Fresh efforts are being made to stamp out bullying in schools.
Education Minister Ruairi Quinn has announced a special forum on the problem will take place next month.
The Anti-Bullying Forum will bring together a range of experts, support groups and representatives of the schools sector, including parents and students.
It’ll identify practical steps and recommendations that could be taken to improve how schools approach and tackle the issue.
Ireland’s Council’s funding conundrum: Local authorities uncertain on their county budgets
Galway County Council’s Ger Mullarkey says that if its Local Government Fund is cut back, “we’ll have to look at things like the library service, if we can maintain the opening hours, repairs of footpaths, repairs of potholes, grants to communities – the things we have discretion over”
MORE THAN three months into 2012, and with little concrete information from the Department of the Environment on what will happen if household charge receipts are less than expected, rural local authorities are uncertain how to budget to run their counties for the rest of the year. Officials from a number of them outline their concerns.
WATERFORD COUNTY MANAGER
“We have one of the lowest commercial rates bases in the country – I think we’re in the bottom half dozen – so we are heavily dependent on the Local Government Fund.”
Mr McCarthy said he had been given no indication from the Department of Environment of what action would be taken if the necessary funds weren’t forthcoming from the charge.
“I really don’t know what will happen, we haven’t been told anything – all I know is what I hear in the media.”
The council was “always cautious” with its spending, he said, but could only plan on the basis of its expected allocation from the fund.
Mr Hogan’s talk of rewards for councils which worked the hardest to pull in the cash was a concern, Mr McCarthy said.
“We did a lot of publicity and did as best we could to encourage people to pay, and obviously we will keep working on that, and I would still appeal to local people to pay the charge, but a lot depends on the make-up of the county . . . if you are a more affluent area, obviously it’s easier to get a higher degree of compliance.”
GALWAY COUNTY COUNCIL HEAD OF FINANCE
For Galway County Council, the choice is stark. “If the fund is cut back we’ll have to look at cutting back services,” Mr Mullarkey said.
“We’ll have to look at things like the library service, if we can maintain the opening hours, repairs of footpaths, repairs of potholes, grants to communities – the things we have discretion over.”
Apart from the Local Government Fund there was very little money coming into the county, he said.
“On the commercial properties we have, there are rates and water charges, there is paid parking in towns . . . but it’s not anywhere near enough.”
He hoped people who hadn’t yet paid would come around to the importance of the charge.
“I hope people will eventually pay. If not, measures will be brought in to pursue people who haven’t paid, but there is no central database of property owners and that doesn’t help matters.”
The council has funds to last until the end of June, he said, and he was asking all departments within the council to hold off on various projects until the funding available from the charge was confirmed. He said he hoped if a critical mass was achieved and a payment rate of 60 to 70 per cent was registered, “moral pressure” would come to bear .
OFFALY COUNTY COUNCIL HEAD OF FINANCE
“We are far more dependent on the Local Government Fund than Dublin or Cork City – the bigger urban authorities with the big rates bases.”
Normally when there are changes in funding structure, the council receives a circular from the department. However, Mr Conlon said there had been no notification of what the council should do, or what the Government would do, if income from the charge fell short.
“There’s been no indication of what is to happen. Obviously if there’s a shortfall in what’s collected, the Local Government Fund will be short, but what that will mean for our funding we don’t know.”
Mr Conlon said he would be asking the county manger and the heads of various departments to look at what could be trimmed back. “That’s a process that happens every year. The last number of years it’s always been difficult to balance the budget, but you have to do it.”
However, he said there was scope for optimism, as the rate of payment was encouraging.
“I wouldn’t be pressing any alarm bells yet, this is a new tax, it’s new to everybody and we’re all on a learning curve. If you think about it, 60 odd per cent come out and vote in a general election, and it doesn’t cost [voters] anything, and we’re well on course to achieve that.”
LEITRIM COUNTY COUNCIL FINANCE DEPARTMENT
“The Local Government Fund means an awful lot more to us than somewhere that has urban centres. We have Carrick-on- Shannon – that’s about it for sizeable towns.”
The Non Principal Private Residence charge brings in some money, as do water rates for farmers, but dependency on the Local Government Fund is high.
Leitrim is doubly unfortunate in that it would have a high proportion of householders entitled to waivers, such as those living in ghost estates. Mr McKeon said most of the unfinished estates were so unfinished that there is no one living in them at all.
On the upside, he is expecting a high level of compliance from those who are liable.
“I think we probably have compliance rates higher than those of our neighbouring counties. We have an older population, what with people emigrating or going to Dublin, and people 45 and up would be more compliant.”
At current levels it would not be possible for Leitrim to cope on the charge it collects, but he said it would be preferable if householders could see a relationship between what they paid and what they got. “I don’t think people realise what goes on behind the scenes and all the things that the council provides.”
There was no comfort for Leitrim in Mr Hogan’s promise to reward those councils which pulled out the stops. “How is he going to quantify that; how is he going to know how hard we worked to chase up the charge?”
FINGAL COUNTY MANAGER
Managers and finance executives in rural local authorities would probably be very envious of David O’Connor’s position. With a strong rates base, he relies on the Local Government Fund for just less than 9 per cent of his budget.
“We are just basically keeping our heads above water, but I don’t want to be too pessimistic – more people will pay before September when the next jump in penalties comes in.”
All local authorities had cut back “to the bone” in recent years, he said. “It’s hard to see how the sector overall could cut back much more; if the money doesn’t come in it could cause serious problems.”
Even if everyone paid rates or a property tax set at a higher rate, it was likely that some form of equalisation would be needed, he added.
“Ever since the abolition of rates in 1978 broke the link between the people and local government, funding of local government has been in decline.”
The valuation process for the property tax was going to present another problem for the Government, he said, given that it took the Valuation Office 12 years to revalue properties in Fingal, South Dublin and Dún Laoghaire-Rathdown.
For Fingal there will be a need to rein in discretionary spending if the charge does not bear fruit, but he said decisions would be toughest for rural local authorities.
“In Galway, for example, there are no towns between Spiddal and the Shannon, so the rates base is minuscule, and people wonder why Galway had no money to invest in water.”
Very High hopes for Galway Harbour investment
Hopes are high for a Chinese investment in the redevelopment ofGalway Harbour,
following a deal made in Beijing recently.
Management at Galway Harbour are “optimistic” about the prospect of Chinese investment in the redevelopment of the port.
It emerged earlier this week that a deal made between An Taoiseach Enda Kenny and Chinese premier Wen Jiabao will facilitate engagement by the National Treasury Management Agency with China’s sovereign wealth fund in relation to possible investment in Ireland.
The two agencies will now examine property, infrastructure and loan portfolios managed by the NTMA and one of the key infrastructure projects that has been of initial interest is Galway Port.
Speaking to the Galway Independent this week, Galway Harbour Company CEO Eamon Bradshaw said that management were engaging in a number of different avenues to secure investment for the redevelopment and were heartened by the interest shown by China thus far.
“We’re delighted. We are looking at international investors, sovereign funds from various parts of the world and we continue to look. We presented at the Chinese-Ireland Relations conference at NUI Galway and illicited quite a bit of interest. This is another strand of it, obviously on an international basis. We’re confident that we do have a lot to offer and we are confident that an investor will come on board.”
Ten cruise liners are scheduled to dock in Galway this year, bringing thousands of visitors to the city, and the proposed redevelopment of Galway Harbour will seek to establish Galway as a destination port for the world’s largest cruise companies.
Mr Bradshaw went on to add that this emerging leisure marine sector could prove very attractive to potential investors and that the upcoming Volvo Ocean Race Grand Finale will be an ideal global showcase for the harbour’s possibilities.
“It’s amazing that this race will finish in Galway, the smallest by far of all the cities involved. It’s a huge statement of belief in what Galway can do and what the port can do. It will be a huge attraction for industry, marine tourism and also maritime tourism.”
Fine Gael TD Brian Walsh also confirmed that the Galway project had been mentioned during discussions with Chinese officials last week.
“The potential of ocean tourism has only recently been realised in China and is currently the focus of significant investment. Just last month, China’s first luxury cruise ship was launched and money is being spent domestically on the development of cruiser terminals. There is recognition of the potential of the sector and the focus is now turning to the European market,” said Deputy Walsh.
“Chinese investors clearly recognise not only the massive potential of ocean tourism, but also the specific potential for Galway as a destination port for cruise liners. Galway is an incredibly attractive city, and if we can make it accessible to the major players in the cruise-line market, the impact on the local economy would be immense.”
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