Council may scrap club rates arrears

Sporting organisations in Co Cork may have rates arrears written off because they have been previously charged for the whole of their buildings instead of just their bars, which are the only part of the premises generating income.

The Government is preparing to change legislation to remove non-profit-making areas of sporting clubs from being rated.

However, many clubs have struggled in the past to pay rates and a number in Cork are already in significant arrears.

At a meeting in County Hall yesterday the issue was debated after Cllr John Paul O’Shea (Ind) said that he was delighted that changes were to be made to the antiquated rates valuation system for sporting organisations and not-for-profit community childcare operations.

He said for years clubs had suffered from the burden of having to pay hefty rates for their facilities, even though only a small proportion of their buildings were generating money.

“In practical terms, this will reduce significantly the size of the building for which sports clubs and community childcare facilities must pay rates and it will provide a sustainable welcome boost for clubs and childcare facilities which are provided to the community, by the community,” Cllr O’Shea said.

Cllr Noel O’Donovan (FG) said the Oireachtas was currently pushing through changes to rates valuation law which would address these inequities.

Cllr O’Shea said that was very welcome, but many sporting organisations in particular still had sizeable rates arrears and they should be written off by the council once the new legislation is enacted.

A number of other councillors from all parties supported his call.

The council’s chief executive Tim Lucey said that the council had always tried to facilitate sporting clubs in the past by offering them easy repayment plans.

He was non-committal on writing off the rate arrears, but said he would “look at the situation” when the legislation was passed.

Mayor of County Cork, Cllr Alan Coleman (FF), said the council had been lenient in the past in the way it had dealt with such organisations and had never taken them to court for rates arrears.

Cllr O’Shea said he hoped Mr Lucey would consult such groups shortly and “at least come up with some type of compromise”.

After the meeting Cllr Bob Ryan (FF) spoke about the situation in his capacity as chairman of the Cork County GAA Board.

“Rates have been a huge cost factor for a lot of clubs, including GAA clubs, over the years. We in the GAA very much welcome the new government initiative.

“We would prefer to see any rates arrears written off as many clubs are under enormous financial pressure, but I’m sure a common sense could be made to reach a compromise on what is owed,” he said.