He was elected unopposed at the annual general meeting of the local town council.
Councillor Henaghan, who previously held the position in 2006/07, has identified job creation as his top priority.
He stated: “I believe we have a responsibility to do all in our power to promote Castlebar as a jobs destination.
“We have a proud history of job creation locally, in both the public and private sectors. Baxter Laboratories celebrates 40 years in the town this year. It grew from small beginnings in a prefabricated building employing 11 people behind McHale Park.
“Baxter’s success and longevity should be a showcase for any potential industry thinking of locating here as it speaks volumes of Castlebar’s desirability as a place to live and work. We also have the support of the Innovation in Business Centre (IiBC) and the Galway/Mayo Institute of Technology (GMIT) at our doorstep.
“I welcome the town manager’s commitment to start improvements to the industrial estate which will enhance the visual impact of the area which is close to one of the main entrances to town.”
Councillor Heneghan, whose late father John also held the position of chair of Castlebar Town Council on two occasions following his election in 1967, looked forward to the opening of the Tourist Community Office at Linenhall Street.
“I believe this will be a base not alone for tourism but as a focal point for information , advise and ideas for job creation and community development.
“This office would not be opening but for the hard work of Castlebar Chamber of Commerce which is employing one person and several volunteers.
“I take this opportunity to pay tribute to Tom Canavan and Peter Flynn, president and past president, respectively, of the chamber and all the members of the various committees who put so much effort into rejuvenating the organisation. They are unsung heroes who do an awful lot of work for little recognition and I have no problem in saying
Castlebar chamber is worthy of the business communities support.”
Councillor Henaghan, who was joined in the chamber of Marsh House by his wife Patricia and eldest son Tom, announced he will bring a proposal before the council in September for the promotion of Castlebar as a jobs destination.
“I am confident of my proposals being supported by the elected members and officials.
There is no doubt a strong and vibrant Castlebar is good for the whole county.”
He made the point the economic climate had changed dramatically since held last held the chairmanship five years ago.
“We are living in much more challenging time now and we have to stand with the people in their difficulty. If we all work together, we can achieve success.”
Councillor Henaghan paid tribute to everybody associated with the town centre regeneration projects, particularly the outdoor workers who were outstanding.
He said the Old Cemetery in Castlebar, as well as the graveyard adjacent to the TF Royal Hotel, were in bad nick.
“Both sites have huge historical and archaeological significant and we need to put a programme in place to maintain them to a much higher standard. They have been neglected for too long. For starters, a grass cutting scheme is essential.”
In relation to the retail sector, Councillor Henaghan said many business were struggling from week to week.
“The situation is not helped by the banking crisis and the sooner it is resolved at national level, the better for the economy. We have got to support our indigenous retailers. We have to put our shoulders to the wheel and help them in every way we can.”
Councillor Henaghan’s party colleague, Councillor Noreen Heston, was elected unopposed as deputy Mayor.
She said she looked forward to working closely with Councillor Henaghan for the betterment of the town.
At the outset of the meeting, glowing tributes were paid to the outgoing mayor, Councillor Eugene McCormack, for the professionalism and dedication.