‘Ludicrous’ - Carlow County Council owed millions by companies that no longer exist

Carlow County Council is owed millions of euro by companies that no longer exist, a council meeting has heard.

The issue of development levies was raised by Independent Ireland councillor John Cassin at the council’s January plenary meeting.

Cllr Cassin said: “Just in relation to the development contributions, closing arrears amount to €2.81 million at the end of the year and there’s a bad debt provision of €2.5 million.

“I wonder how many of the development levies are in credit overall. But the €2.81 million, who owes that and what is the probability of getting it?”

In response, Director of Finance PJ Leonard said that the council does not expect to receive 90 per cent of this money.

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He stated: “For the last number of years, we’ve put in a provision for doubtful debts of 90 per cent on those arrears, which are made up of a mix of residential and commercial properties.

“Some of which at this point would be subject to the statute of limitations. But if we have kept those on our books, every year we get payment on some of those.

“[That is] predominantly through the follow up action of the staff here and also through the sale of properties, whereby it’s a requirement by due diligence of the solicitors to offset any debt that is charged on the property, so that’s why we maintain those.”

Cllr Cassin came back and asked what the statute of limitations was in such cases.

He added: “It seems absolutely ludicrous that somebody would have arrears. We’re [owed] €2.81 million [with] the amount of work that we do in the county and we’re kind of going sure look if you come in we’ll see. What’s the probability of getting that €2.81 million?”

In response to Cllr Cassin, Mr Leonard said that the statute of limitations was seven years, or seven years since the debt was last acknowledged.

Coilín O’Reilly, Chief Executive of Carlow County Council, said that most of these companies no longer exist.

He stated: “I think one of the things to note is that most of the levies that are unpaid relate to companies that have gone out of business.

“Very few of them would be still functioning businesses that owe us money. So a lot of the money gone out in the past is just legacy debt.”

People Before Profit-Solidarity councillor Adrienne Wallace expressed her opposition to writing off these debts.

Cllr Wallace said: “I wouldn’t be for writing that off. In fact, what do you have to do to try and get this money?

“There’s been so many calls here when it comes to fly tipping and littering and all that, to name and shame them. It’s exactly what we should be doing for these companies. That’s millions of euro.

“That’s a social crime in my eyes. That [money] should be here legally and it’s not, so why are we being a bit of a soft touch with them?

“How do we go about collecting this money? Just sit and wait and hope or is there any legal route?”

At this point, the Cathaoirleach, Cllr Ken Murnane, interjected and said that if a company goes into receivership, there is no way of retrieving the money.

In response, Cllr Wallace commented: “It’s socialism for the rich there isn’t it.”

Independent councillor Charlie Murphy also expressed his frustration at the situation.

He stated: “So just to get this right, if you don’t pay them and you stick it out for seven years, you don’t have to pay.

“Am I missing something here? Is that right? Jesus! So what I want is a hard neck for seven years.”

In response, Mr Leonard said that in most cases, the debts are pursued through the courts. He explained that once court proceedings begin, the statute of limitations no longer applies.

Mr O’Reilly added: “So what you’re assuming is that there are people who don’t pay for seven years and we just go at the end of the seven years, it’s written off.

“We go to the courts before the seven years. We pursue it through the courts and we either win it or we don’t win it, that’s how it works.”

The Chief Executive added that a report would be circulated to councillors detailing the number of companies that owe the council money and the circumstances surrounding those debts.

At the end of the discussion, some councillors expressed their frustration at the fact that the companies in question won’t be named in the report.