City chief hits back at judge in rates dispute

Cork’s city manager has hit back at the judge who criticised the city’s commercial rates policy, describing his comments as “unfair and unbalanced”.

Tim Lucey said he took “serious issue with both the tenor and content” of Judge Olann Kelleher’s remarks about the rising number of rates arrears cases coming before the city’s district court.

Judge Kelleher spoke out after 170 rates cases were listed at Cork District Court. He said there were a further 200 similar cases due before him in the next two weeks. He also raised concerns that rates were being set so high they were closing businesses.

Mr Lucey rejected insinuations that the council operated its rates policy in a way that caused businesses to close, and that it was “wedded to litigation” to ensure payment of arrears.

“It is not in the interests of Cork City Council to seek the closure of businesses which are the sources of municipal funding.”

He said the rates policy was operated fairly and with a degree of flexibility — a fact recognised by many district court judges who were familiar with the council’s perspective on the recovery of its commercial rate debt.

And he pointed out that of the 170 rates cases before the judge on Wednesday, orders were not sought in relation to 96 because the council believes it can work out payment plans with the rate payers.

“It is particularly regrettable that the remarks on the rates policy were not properly informed and, as a consequence, were unfair and unbalanced.

“Perhaps the most worrying feature of the judge’s remarks is the insinuation made that the council operates the policy in a manner that causes busin-esses to close.

“The council operates its rates policy on a consistent basis, with flexibility and reasonableness, seeking to ensure that where difficulties exist, arrangements can be put in place which allows rates to be paid on a basis that facilitates businesses to continue trading.”

Those arrangements may include deferral or payment by instalment.

Mr Lucey said court orders were sought only as a last resort and that the number of people being brought to court represented a tiny fraction of the estimated 6,500 rate payers in the city.

And he pointed out that the commercial rate has not increased for four years.

“Even if the city council was in a position to reduce rates, a 10% reduction would equate to a reduction of under €20 per week for 70% of city businesses, with 37% benefiting from less than €6 per week.

“However, a 10% reduction would be a loss of income to the council of €6.4m per annum.”

This would hit funding to events like the Christmas in Cork festival, and services such as street cleaning.

Central government has cut its funding to Cork City Council by €8.6m, or almost 30%, since 2008.

The city is owed about €15m in outstanding commercial rates. The rates base accounts for about 35% of the city council’s income.

* RELATED STORY: ‘What exactly do we get for our rates?’