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IMMEDIATE RELEASE

SDLP MLA BURNS: £7 MILLION RATES DEBT ‘WRITTEN OFF’
 

South Antrim MLA Thomas Burns has described figures which show over seven million pounds of unpaid rates debt has been written off as ‘uncollectable’ over the past five years as ‘totally unacceptable’. He also urged local councils to do more to pursue those who ‘play the system at the expense of others’.

The figures were released to the SDLP representative in response to a written question tabled to Minister of Finance and Personnel Peter Robinson.

Mr Burns said, “These figures are very high. It is apparent that a much more robust approach must be taken to recover this so-called ‘uncollectable’ debt.

“I fully appreciate that there are cases of legitimate hardship where rates are genuinely unrecoverable – certain types of bankruptcies for example - and these cases should be dealt with sympathetically. However at the same time a much more forceful approach needs to be taken with those individuals who deliberately abscond on payments.

The SDLP representative said that allowing this ‘black hole in the budget’ to continue to exist at a time when rates bills are increasing and levels of debt in some councils are ‘spiraling out of control’ was ‘a recipe for disaster’.

He further added, “Local councils need to do more to balance the books and this would be a good place for them to start. I am sure most already recognise this and I note that the total figure has dropped from £2 million in 2003/04 to around £1.3 million in 2006/07.

“When looking at the overall picture, some councils are performing well and some are doing badly. It’s a mixed bag.  No doubt the lion’s share of the credit should be given to Belfast City Council who have dramatically sliced the amount of debt they have written off in the past five years.

“In my own borough of Antrim we have also managed to reduce the amount written off from £103,000 in 2005/06 to £30,374 in 2006/2007, but I note the provisional figures for 2007/2008 show this figure is creeping upwards once again. This is disappointing.”

He concluded, “Ever increasing rates bills, directly linked to high levels of local council budget deficits, are putting a strain on many hard working families out there. At the present time the man in the street feels like he is getting ripped off on all his bills and rates hikes year after year are very hard to take. Better fiscal management is needed in many councils.”

NOTE TO EDITORS: Full details of unpaid rates written off as uncollectable debt for each council are are available on request.

ENDS