Derry MLA Mark Durkan says urgent intervention is needed to save local councils from COVID-19 induced insolvency

Mr. Durkan, the SDLP social justice spokesman, called for urgent collaborative working from all relevant departments in order to safeguard the future of local authorities.

He was speaking after SOLACE NI, a membership network for public sector and local government professionals, briefed the Stormont Communities Committee this week, and advised that some councils could face insolvency by August if meaningful intervention was not forthcoming.

“Local councils are an integral part of our society. Their importance has been underlined since the outset of this pandemic in terms of the support and co-ordination of community response schemes coming from local government.

“As such, councils must be commended for their efforts to date. They have been given the colossal task of navigating this crisis, redesigning local services and support schemes and essentially been left to second-guess guidance coming from the Executive," said Mr. Durkan.

The Derry MLA, who sits on the committee, said local authorities have been leading the front line response to the pandemic locally.

“The demands within our communities are growing and will continue to grow post-COVID; as local councils are best placed to respond to that need it is crucial that they have the resources to do so.

"They have been adding their own financial support to community organisations and that support will disappear as revenues dry up which could have massive implications.

"This issue threatens all areas of council services including but not limited to local festivals and events, sustaining leisure centres, the upkeep of parks and the provision of weekly bin collections. The reality is, if the Executive refuses to bailout local councils, it will have a devastating impact on all facets of daily life.

“In addition, it is utterly ridiculous that it took until May 1 before clarification was given on access to furlough for council workers. Had this information been provided earlier, vital savings could have been made.”

Following the briefing, the Chief Executive of the Northern Ireland Local Government Association (NILGA) Derek Callan said allowing councils to become insolvent would be disastrous.

“It is clear from the evidence provided at Stormont by SOLACE that local authorities in Northern Ireland are receiving accolades for their response and recovery work amidst COVID-19 but are approaching a financial endgame with catastrophic outcomes for the community.

"NILGA has explicitly highlighted that unless councils receive the type of un-ring fenced support all other UK councils have received in the short term - until end of June - and in the medium term - looking into the next financial year, to offset irretrievable losses of hundreds of millions of pounds of rates based revenues here in NI, then institutional collapse or severe cuts in services will ensue.

"Support for the 22 Welsh and 32 Scottish councils has been agreed, by the respective Assemblies, not linked to services but their survival, because of the consequences in the community,” said Mr. Callan.