Council makes E1.6m bad debts provision

KILKENNY Borough Council is owed E1.9 million in development charges but only expects to receive a tiny proportion of that.

KILKENNY Borough Council is owed E1.9 million in development charges but only expects to receive a tiny proportion of that.

During discussions on Kilkenny Borough Council’s draft budget, Cllr Martin Brett asked head of finance John Dempsey about outstanding development charges. Mr Dempsey said that in a lot of cases there is no point in going after these developers who owe money to the council. He said that the council is owed E1.9 million in outstanding development charges but that the council had made a provision of E1.6 million for bad debts. Mr Dempsey said “realistically we might collect another E300,000.”

Mr Dempsey said that the council could fall back on planning permission in the future. “We’ll have a chance to collect some of the money when the planning comes back up,” he said. The Borough Council has already successfully collected E1.2 million in development charges that will be used to provide services and fund infrastructure projects in the future.