Over €3.5m in rates owed to council

Cavan County Council’s rates arrears have climbed to over €3.6m, following the downturn in the economy, it was revealed at the April meeting of the local authority on Monday afternoon. Councillors were told by the executive that if the rate of decline in collection rates continues, it could impact on the provision of services and possibly hit the roads budget.

The collection rate has dropped from a high of 99% a few years ago to 71% in 2012. Each percentage drop accounts for a reduction of €110,000 to the council, elected representatives were informed.
Speaking at the monthly meeting, Des Maguire, Head of Finance, informed the members that there had been an increase in the uncollected rates. The increase in arrears was in the order of €2.98m to €3.61m for 2011 and 2012.
However, the positive news was that €720,000 had been paid from January 1, 2013 to March 15, 2013. Mr Maguire pointed out that the rate of collection continues to decline from 79% in 2010 to 75% in 2011 and 71% in 2012.
He emphasised the importance of trying to reduce the fall-off. “If you don’t have money, you cannot spend it,” he stated.
Mr Maguire added that the council is continuing to work closely with rate payers.
He stated the council had four revenue staff who are engaged full-time in that practice. “It is challenging times for everyone involved and the objective is to maximise the collection.” He admitted they had to take into account the rate payers’ positions.
He pointed out that of the arrears of €3.61m, some €526,000 was owed by companies in receivership or liquidation. “I accept you will never have full collection. We were fortunate at budget time, we made provision for doubtful debts.”
Fianna Fáil member Gerry Murray stated it reflected the problem ratepayers are facing. “Many small to medium companies are struggling.” He paid tribute to the excellent work that the four rate collectors are doing.
“I hope we don’t have to review our roads works programme if there is a further drop in rate collection,” he said.
Sinn Féin’s Charlie Boylan stated it was important they got the message across that they had to support local business as a lot of them are under pressure at the moment. He could remember when Cavan had a 99% collection rate, one of the highest in the country at the time.
“We have to get these businesses back up and running,” he said.
Cllr Boylan pointed out that there are a lot of premises closed on the Dublin Road area of Cavan Town, in particular, and there didn’t seem to be any urgency to get them back open.
Bailieborough representative Sean McKiernan said the revenue staff are doing a tremendous job in difficult times. He believed the Oireachtas members should be doing more to ensure there is clear transparency of funding for local authorities.
Rate paying is archaic, he said, and there had to be a more transparent system. If people could see where the money was going and services delivered it would be a great help, he stressed.
Chairman, Paddy O’Reilly pointed out that if the collection rate continued to decline at the same rate, it would make a difficult situation for the county.
Mr Maguire also acknowledged the work done by his staff and he appreciated what they were doing in difficult times.