Record €95.7m in rates collected last year by local authority

One of the country’s largest local authorities collected a record €95.7m in rates last year, up more than €16m from the peak boom year — 2006.

Cork County Council’s rates-gathering service in 2011 exceeded its budget target by almost €2m. Head of finance Ger Power told councillors yesterday the rates collected last year were up €5.6m on 2010.

He acknowledged it was “very difficult to collect money in the current financial climate”, which astonished some councillors who could not understand how the local authority was pulling in significantly more money than it did during the Celtic Tiger years.

Cllr Seamus McGrath (FF) said that the council appeared to be “bucking the trend” in its rates income, especially considering the economy had been far more vibrant in 2006.

Cllr Dermot Sheehan (FG) said it was “staggering” the local authority had actually managed to increase its collection rate on last year as the economy had deteriorated.

Mr Power said the council had not increased its collections rates but noted there had been some revaluations which had brought in extra money, especially from the ESB. He said the increased take was also down to new businesses coming on stream and especially because some existing businesses were expanding.

“Some businesses out there are actually doing very well,” Mr Power said, although he acknowledged others were finding it difficult to survive as they were not getting loans from financial institutions.

However, the council has a bad debts provision on the rates of €9.97m and Mr Power said this was likely to increase.

He said a further €3.6m in arrears was tied up because companies owing rates were “in receivership or liquidation”.

A number of councillors said they were very impressed the rate collection office had performed so well considering the economic conditions prevailing in the country.

“I think it’s a fantastic performance by our rates collection staff and we should congratulate them. But we should also acknowledge that hard-pressed businesses in the county are honouring their debts,” Cllr Danny Crowley (FF) said.

However, some councillors expressed concern people taking over businesses which had gone bust were being made to pay rates owed by the former occupier. Cllr Veronica Neville (FG) maintained Cork County Council was now only one of a handful of local authorities which still insisted on such a practice.

She said it was a serious hindrance to start-up businesses, which needed all the money they could get to survive their first few years.

Cllr Dan Joe Fitzgerald (FF) echoed her sentiments, although he acknowledged county council staff were willing to take stage payments to offset the burden on such businesses.

“It’s hindering the development of our high streets,” Cllr Kevin O’Keeffe (FF) said.