Council faces €0.5m bill after bin fees ruling

A LOCAL authority may have to repay up to €500,000 to its customers after a landmark legal ruling on bin charges.

Cork city council was last night still examining the implications of the court case taken by a businessman in Douglas.

Labour Cllr Catherine Clancy said the successful legal challenge could cost the city up to €500,000.

She called on city manager Joe Gavin to make urgent provisions for the potential pay-out ahead of Monday night’s budget meeting.

Businessman John McCarthy took the council to court after bin collection arrangements were changed after he paid his fee.

Mr McCarthy paid €260 for a weekly bin collection service and availed of a €30 discount for paying early.

But a week after paying, the council wrote to Mr McCarthy, and to the rest of its estimated 36,000 service charge customers, stating that bins would now be collected every second week.

Mr McCarthy wrote to the council seeking to be reimbursed half the fee.

The council refused, citing the Environment Act which it said allows councils to change the terms of their contract.

But Mr McCarthy took his case to the Small Claims Court and won.

He argued that the council was in breach of Section 40 of the Sale of Goods and Supply of Services Act 1980, which states that a person must be informed before a contractual arrangement is changed in any manner.

The court ruled that the council pay back half of the fee — or €130 — to Mr McCarthy.

Ms Clancy praised him for taking the case, and praised the court for its stance.

She said city officials must take steps to ensure that anyone else in the same position is reimbursed in full.

“We have about 36,000 people on our service charge list,” she said.

“If 10% of those paid early, then this could cost the council up to €468,000.

“But people shouldn’t have to go to court to sort this out. The council should just pay it back. Officials need to look at the files, see who’s entitled to reimbursement and not have people clogging up the Small Claims Court.”

There was no one available from the council to comment yesterday.

Socialist Party Cllr Mick Barry backed Ms Clancy’s calls.

“I am calling on the city manager to make immediate arrangements to reimburse the thousands of Cork householders who availed of this scheme last year,” he said.