Businesses owe Cork Co Council €94m in rates
However, despite this, the council has an 80% collection rate which is the sixth highest of all local authorities.
Figures released yesterday showed €18.9m was owed in Jan 2011 followed by €21.8m the following year.
Last year, a further €26.2m was outstanding and to date, this year’s arrears total €27.5m.
The figures were sought by Fianna Fáil councillor Daithí Ó Donnabháin, who wanted to ascertain the true extent of the economic downturn and how it had hit the local business community.
He said it was obvious more needed to be done to help struggling businesses. His party colleagues signalled they will be seeking to have rates reduced as part of the council’s budget for 2015 which will be finalised in December.
Council officials, however, explained that rates were not paid on business properties for a number of reasons, including vacancy, closure and liquidations.
In 2013, there were 10,371 premises in the county deemed liable for rates — 1,204 (11.61%) were vacant or closed at the time and rates were not payable.
Liz Barry, the council’s head of finance, said that, by last December 31, a further 1,566 (15.10%) of accounts “would have some element of ‘strike off’ applied” due to various reasons.
The council’s deputy chief executive, Declan Daly, said despite the recession the local authority had a very good collection rate. “We have around an 80% collection rate and we are sixth highest for this in the 32 local authorities in the country,” he said.
In 2011, the council successfully collected €95.7m. The figure climbed to €98.8m in 2012 and reached €101.8m last year.
Up to October 8 this year, the collection rate was €93.4m — which included the collection rate for the nine town councils abolished in June.
Mr Ó Donnabháin said helping more businesses set up would be in the council’s interest as rates were a huge part of the yearly income.
He said the council needed to be more dynamic in the way it supported business.
Mr Daly, however, said the council retained 1% of its rates to support emerging businesses through a special Economic Development Fund.
Mr Ó Donnabháin said while he appreciated that fact, the hike in arrears in recent years was worrying as they had increased from19% to 25%.
County mayor Alan Coleman said he was concerned at the large amount of rates outstanding. “We need to support the small high street businesses in our towns more,” he said. “We have to put more supports in place to keep them afloat.”
