One third of €713m owed to State will never be paid

The State was owed €713m in development contributions by the end of 2011, but local authorities had to provide for the likelihood that more than a third of that total would never be paid.

Correspondence sent to the Oireachtas Public Accounts Committee by the Department of the Environment shows that total bad or “doubtful” debt provision up to Dec 2011, the latest year for which fully audited figures are available, was €250m.

The department said local authorities create a bad debt provision “to recognise the possibility that some of the short-term debtors due may not be collectable”.