By Cianna McNally

THE possibility of an increase in pay-parking charges in Monaghan Town was raised at the May monthly meeting of Monaghan Town Council on Monday of this week.

The prospect of a rise in parking fees by 10c an hour throughout the town because of VAT of 21% being implemented on the income councils receive from the pay-parking machines from 1 July was mooted.

The VAT will not be charged on on-street parking machines but it was implied at Monday’s meeting that if an increase is introduced it is likely to apply to all areas where the pay-parking system exists. Town Manager Declan Nelson stated that he wanted to advise the members that the VAT set by the Revenue Commissioners would have to be paid from 1 July this year, but would only apply for six months.

Members of the council deferred a decision on the issue until their June monthly meeting in order to receive a briefing on what the financial implications would mean and also to find out whether an increase can be covered by a reduction in expenditure in other areas. Concerns were expressed by councillors that if parking fees were increased it would adversely affect businesses in the town, particularly those which are already struggling due to the current economic climate.

Cathaoirleach Sean Conlon said that if the council did not increase pay-parking charges it would take a considerable hit financially which would then impact on other services. He requested that details on revenue generated by parking fees in the town to be given to members in time for the June meeting.