CLARE County Council has refunded over €1 million in rates to businesses across the county this year, it has emerged.
News of the refunds emerged ahead of the council’s series of meetings to approve a budget for 2007. Over 2004 and 2005, the council collected over €50 million through commercial rates from businesses across Clare.
Concern was expressed last night that the refunds could adversely affect council finances.
The largest recipients of rates refunds were Shannon Development that received over €600,000 and the Shannon Airport Authority (SAA) whic received €229,720.
Other companies to be refunded sizeable amounts include William Neville and Sons of Rockfield House, Wexford who received €43,544; Business Integrated Services who received €18,933 and Austin Delaney of Ballykilty Manor, who has been refunded €9,097.
Council documents show that Shannon Development received €516,628 as a result of vacant properties in the Free Zone and €89,888 for properties in the ‘Clare County Cluster’.
“It is my understanding that the council’s finances are turbulent to say the least in terms of meeting the targets set down by the budget last year.
“Now, having to pay back this money is putting extra pressure on Clare County Council and I’m sure there are valid reasons for the refund of rates, but this warrants an explanation from management,” said Cllr Brian Meaney (GP).
“I would be concerned about the number of vacant industrial buildings and I would also be concerned about the council’s finances, but I believe that the council would have been aware at some level that these buildings were vacant,” Cllr Patricia McCarthy said.
“It would appear that five per cent of rates income is being paid back to state companies. That is completely unacceptable and the Local Government Act needs to be amended.
“The amount of vacant property is an indictment on Shannon Development and when the council vacates its office at the information age park to relocate to its headquarters, is it then going to be the information age park white elephant?” said Cllr Martin Conway (FG).
A council spokeswoman said, “Rate refunds are made in accordance with the Local Government Act 1946 Section 14, which is the appropriate legislation in this area.These are provided for as part of the annual budget process each year.”