Council sweats over €7m unpaid rates

WITH almost €7 million in uncollected commercial rates in Cork county, businesses in financial difficulties have been urged to contact county hall’s finance department.

The plea was made yesterday by senior council officials after it emerged there was a major increase in rate arrears, last year, compared with 2007.

At December 31 last, a staggering €6,978,425 in rates remained outstanding.

On the same date in 2007, the arrears were just €2,992,408.

Ger Power, the council’s head of finance, said €3,624,889 in rates had been written off last year from a total bill of €96,820,552.

The local authority collected 93% of the rates it was owed last year, down from 96.61% in 2007.

Mr Power said he expected 2009 to be “a very difficult year for businesses” in the region.

“Anybody experiencing difficulty [paying rates] should come and talk to us now and not leave it,” Mr Power said.

He said it was hoped that businesses in trouble could hammer out a plan of staged payments.

The head of finance said the council was having difficulty trying to balance the books.

Mr Power said every 1% loss of rates collected equated to around €1 million in lost revenue.

Rates are extremely important to the council, because they are used to fund its many services.

He said taking businesses to court for not paying their rates was very much a last resort.

“We do listen to people. We would always have tried to contact people before going to court. If they don’t want to talk to us there’s nothing we can do about it,” Mr Power said.

County manager Martin Riordan said the local authority appreciated the business community, that’s why it hadn’t put up rates this year. He acknowledged that businesses were experiencing a cash flow problem.

Mr Riordan said a 10% slow down in rates payments would present the council with a major financial headache.

“2010 is going to be a difficult year for the council to adopt a budget. I’d urge people to contact the finance department early rather than later,” the county manager said.

Cllr Tomas Ryan (FG) said businesses were experiencing problems because banks wouldn’t provide them with loans pay their rates.

He urged council officials to “go lightly” with those who owed money “so they could get over the hump”.

Cllr Dan Fleming (FF) wanted rates reduced to stimulate business.

“Landlords will have to cut rental prices. Smaller industrial units will be needed because businesses will be on a smaller scale,” he said.

“If people go out of business we won’t only lose income from rates, but also from water charges.

“We should go easy on businesses at the moment,” said Cllr Frank O’Flynn (FF).