Traders to face court action over outstanding rates

CASH-STRAPPED businesses in Kinsale, Co Cork, have been warned they face court action if they fail to cough up their rates after the town council revealed more than €1.8 million remains outstanding.

A reported 60% of rates owed to Kinsale Town Council have still not been paid, it has emerged, prompting council chiefs to respond by issuing six-day notices to traders in arrears in the harbour town.

The council yesterday confirmed €1.825m in rates remain uncollected. That figure comprises €1.1m owed for this year, with the remaining monies accounting for arrears from last year.

A total of €950,000 in rates have been collected so far this year.

Town clerk Michelle Kelleher said outstanding rates differ hugely, depending on the size of the business. Bigger traders could owe up to €100,000, while smaller ones could have debts of just €200.

But she insisted court action was a last resort, urging businesses to get in touch with the council so as to come to an arrangement.

“We want businesses who are struggling to make contact with us so we can come to some sort of an agreement, like setting up a standing order.

“Many businesses which got into trouble last year are still trying to pay back their arrears, but our message is that they should come in and talk to us.

“The last thing we want to do is to take people to court, but we may have to.”

Over the past 12 months many businesses in the tourist town have been fallen victim to the downturn and shut up shop.

Fine Gael Councillor Dermot Collins said: “In fairness to the traders in the town, the cost of doing business now is prohibitive.

“Aside from rates, which are reasonable in Kinsale and lower than the county council’s, there are water and energy charges and wages to pay in the middle of a very bad recession.

“Hopefully arrangements can be made for those in trouble to pay by instalments. The last thing anybody wants, including the town council, is to take them to court.”