Bin customers still owe Council €360,000

The local authority could get ‘stung’ for a bill of up to €360,000 from former bin customers since the service was privatised.

When Galway City Council privatised the bin service back in 2013, amid controversy and opposition, it was owed some €708,000 from customers, according to Head of Finance, Edel McCormack.

Since then, she said, the amount owing was reduced to €390,000 by the end of 2014; and that amount was further reduced in the first few months of this year through the recoupment of some €30,000 in outstanding bin charges.

Though the former City Council bin customers were now being serviced by private bin operators, they still owe roughly €360,000 in historic bin charges.

“We’re pursuing all outstanding money,” said Ms McCormack this week.

She was responding to queries from City Councillor Frank Fahy (FG), who asked if the legacy debt would be pursued.

“We sold the service for €500,000 or €550,000 and I just want to make sure that we recoup this money that is owed, otherwise the amount we sold it for will turn out to be pittance,” said Cllr Fahy after the meeting.

He said since privatisation there has been an increase in the level of illegal dumping in places such as Menlo.

In 2012, it cost the Council €4.5 million to operate last year with an income of €2.8 million leaving them with a shortfall of €1.7 million, which includes €500,000 to cover the waiver scheme for 2,400 households.

When a private operator entered the market the number of Council bin customers had fallen from 22,000 nine years ago to just under 11,000 in 2012, of which about 20% are non-paying waiver customers.