Construction collapse leaves Council at a loss for €17m in development levies

A review of unpaid development levies by Galway County Council – totalling more than €17 million – has found it is “doubtful” that a large portion of the figure will ever be paid. As a result, the Department of Local Government has ordered a “thorough investigation” of the debts.

That investigation is already underway, and a report on the largest debtors will be completed by the end of the year.

In an audit of the Council’s annual accounts for 2012, the Local Government Audit Service found the unpaid debts are proving a serious problem to the local authority’s revenues.

Accounts show that €17.4m is owed to the Council in respect of development levies – charges placed on developers when a project commences, with the monies then earmarked for infrastructure and facilities in that particular area.

Of this, €1.9m is shown as debts relating to current planning contributions, and a further €15.5m owed by ‘long-term’ debtors (those which are not due for collection within the next twelve months).

“A review of this €15.5m would indicate that a very large portion of it is doubtful. Amounts totalling approximately €10m are based on developments where it is not certain that the developments have commenced.

“Another €4m is with the Council’s law agent for court action, while other issues arise in respect of debts that may now be statute barred or where the original levy was incorrect.

“All of these areas need to be thoroughly investigated and proper collectable debts established for inclusion in future accounts,” the auditor’s report reads.

For full story, see this week’s Connacht Tribune.