Galway County Council’s €7.7m debt for work on island harbours

Galway County Council was carrying a debt of €7.7 million for work on Kilronan and Caladh Mór Harbours which the Department of the Arts Heritage and the Gaeltacht had failed to cough up for.

A local government audit of the coffers from 2013 has queried the size and length of the debt incurred for work on Kilronan and Caladh Mór harbour developments which still amounted to €7.7m.

The Cé an Chalaidh Mhóir on Inishmaan was opened in 2008 at a cost of €14m, while Kilronan Harbour costing some €40 million was finished in 2012.

“It is not certain when this will be paid. Only €300,000 of this has been paid to date and over €4m of it is outstanding since 2011. Galway County Council does not have a bad debts provision for Government grants. It is important for the financial planning of the council going forward that this matter would be resolved promptly,” wrote the auditor.

The money was spent on the projects after a commitment was given to be reimbursed from central coffers. The department had committed to paying €900,000 over three years with a review next year, without admitting liability for the remainder, acting chief executive Kevin Kelly explained.

“We undertook works on behalf of the department, we paid contractors for all services, none of which were in dispute. Financial circumstances changed and they didn’t have the money to pay us.”

The debt was described as incredible by Cllr Sean Canney at this month’s Galway County Council meeting.

“€7.7m is a hell of a lot of money to be financing ourselves,” he complained.

Cllr Tom Healy (SF) tabled a motion – which was unanimously agreed – calling on the Minister for Arts, Heritage and the Gaeltacht Heather Humphreys to deal with the debt as a matter of urgency as carrying it was having a severe effect on Galway County Council services.

See full story in this week’s Connacht Tribune.