Oireachtas Joint and Select Committees

Thursday, 27 June 2013

Public Accounts Committee

2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts

11:00 am

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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I welcome Ms Tallon and her officials. I will start by asking Ms Tallon about rates, specifically rates arrears and rates that have been written off. The most up-to-date figures I have seen have been for 2006 to 2010 in response to Dáil questions I asked about the amounts that have been written off and the amounts in arrears in local authorities around the country. Figures suggest that it is more than €300 million in both categories. Between 2006 and 2010 the figures suggest that €311 million has been written off and the amount owed to date seems to be more than €300 million. Having regard to the different local authorities, town councils, county councils and city councils, there seems to be some disparity with regard to who is writing off these amounts. In the case of some county councils the figures suggest that no amounts have been written off and the same appears to be the case for town councils. In the case of some other local authorities massive amounts of money have been written off. The amount of uncollected rates increased fivefold, for example, in Wicklow County Council in the space of two years, with the amount increasing from €824,000 to €4.1 million.

Kinsale and Athy local authorities were the only authorities that had reduced the amount owed in uncollected rates over the period. Athy, Kells, Trim and Cashel were the only four town councils that did not write off commercial rates. Kildare and Meath county councils were also in that category, while the amounts for other urban areas were massive. There are two issues. Basically, the amounts of uncollected rates are going up and up. That is the trajectory; that is the trend. We are writing off far more in arrears. What are the regulations and the guidelines with regard to individuals and local authorities when it comes to writing off arrears and commercial rates? Is this done arbitrarily? Is it a subjective issue with regard to local knowledge and the particular business in question? What are the guidelines within the Department and how are decisions made when it comes to writing off arrears?