City ‘still vibrant’ despite €3m surge in rates arrears

Cork’s city centre remains vibrant and strong despite a €3m surge in commercial rates arrears to €18m, the city manager insisted last night.

Tim Lucey said the arrears increase, from €15m in 2011 to €18.6m in 2012, could be explained by the fact the council could not write off rates on vacant properties.

He told last night’s meeting that the council had to roll the arrears over year-on-year, and that the €3m hike was not necessarily due to a rise in the levels of vacancy.

Mr Lucey said it was significant that the council managed to collect €57.2m in rates last year, which was close to the €57.5m that was collected in 2011.

This sustained collection rate over two extremely difficult years for the economy and for businesses shows that businesses in Cork city centre are resilient and that the city remains vibrant, said Mr Lucey.

“I want to commend the business sector for again contributing to the services we provide,” he said.

“The rates payers are still able and willing to contribute on the same level and that is a significant factor.”

As a result of a major fall in central government funding, the rates bill now accounts for 40% of the council’s total income.

Last November, the city’s commercial rates policy was described by district court Judge Olann Kelleher as “unfair and unbalanced”.

He spoke out after seeing a rise in the number of rates arrears cases coming before the city’s district court.

Almost 400 such cases were listed before the court over a few weeks, with more listed for hearing.

Judge Kelleher also raised concerns that rates were being set so high they were closing businesses.

Following the judge’s comments, Mr Lucey defended the city’s rate policy: “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.”

Last night, Fine Gael councillor Jim Corr (FG) called on city officials to probe businesses in arrears to see those who could not pay, and separate them from those who would not pay.