THERE was a huge sigh of relief in the business community around Carlow when members of the town council voted in favour of cutting rates by one per cent.

The reduction in commercial rates was welcomed by the business community and the proposed cut was met with no dissenting voices from the members.

'This hasn't happened in my time,' said assistant town clerk Seamus de Faoite. 'We are in unchartered territory here. I have only ever seen rates increase or remain at a zero per cent change like last year.'

County manager Tom Barry proposed in the estimates 0% but the members voted to follow the same line as the county council the previous Friday and make a cut of 1%.

Chairman of the town council Des Hurley said something has to be done to generate confidence within the business community.

'This is why we decided to make a drop in commercial rates,' he said. 'It should encourage more investment in the town. Things are going to be very different in all areas this year as there will be no money for projects that have been set out.'

The proposed cut was unanimously passed by the town councillors.

'We would love to cut it further but services have to be maintained also so if commercial rates were cut any more other areas would be affected.'

Cllr Rody Kelly said the members were anxious to take in to account the economic climate while still managing to provide a viable level of services.

'It is an achievement to drop the rate while maintaining services,' he said. 'We hope to help the business community to retain competitiveness.'

He was particularly pleased that the allocation for the schools meals programme was maintained at last year's level of ¤20,000.