Some difficult decisions still lie ahead in the battle to resolve the Council's income with its shopping list in the new financial year.

Despite facing up to the reality of a £1.2 million funding gap, there was confidence this week that Comhairle nan Eilean are still on course to contain the rise in combined Council Tax and Water Charge Bills to 10 per cent.

The only factors that could upset the calculations are the possible failure of the North of Scotland Water Authority to implement full equalisation of water bills and teaching staff being awarded a four per cent pay rise rather than the 2.5 per cent budgeted for. If teachers get the higher award, the Council will need to find an extra £200,000 to pay salaries.

Barvas councillor, Mr Roddy Macdonald commented at this week's Finance Sub Committee that the figure of four per cent has been floated and this was very bad news for many other local authorities who are already talking about compulsory redundancies among teaching staff.

Finance Director, Mr Robin Bennie remarked that other white collar staff are likely to accept a two per cent pay rise this year, saving Comhairle nan Eilean £100,000 which could go back into meeting contingencies. Teachers coming in at a four per cent, however, would prove a bit of a headache.

Vice convener, Mr Angus Graham added that he did not think there was any need to contemplate compulsory redundancies among teaching staff at this stage in contrast to many other local authority areas.

Another regard in which the Council was fortunate, it was stated, was in the continuing high level of Council Tax and Non-Domestic Rates collections which are presently only in default by four per cent and one per cent respectively.

Carloway councillor, Mr Alex Macdonald commented that the people of the Western Isles were to be complimented for paying up. The Finance Director agreed, saying there had certainly been a modification in behaviour over the years.

The Finance Sub Committee heard the Revenue Support Grant Settlement for 1997-98 is considerably worse than first forecast. This was primarily due to the Secretary of State's attempts to extract extra resources for education and the police and fire services, and the continuing transfer of resources for Care in the Community coming out of an ever declining budget. Together with no provision for pay settlements or inflation, the real terms cut for Comhairle nan Eilean equates to £2.5 million.

In addition, the Highways Winter Maintenance budget is chronically under-funded and only additional expenditure of £500,000 will ensure current level of services being maintained.

Original article Stornoway Gazette Feb 01 1997.