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Council benefits from bin arrears threats

Wednesday, 24 September 2008

Dún Laoghaire Rathdown County Council has collected over a half a million euros in waste collection arrears since it sent thousands of letters to householders in July demanding payment.
In July the council wrote to householders warning that it would "pursue outstanding debts up to and including litigation".
Officials took the decision to threaten legal action following recommendations in an audit of its accounts.
A council audit for the year 2006 showed that up to the end of that year over 5,000 people in the area had not made any bin charge payments at all since their controversial introduction in 2000 while 6,899 households were in arrears of more than e1,300.
People who refuse to pay could ultimately end up in court where they face large fines as well as having to pay the council's legal costs.
Despite the massive sum in outstanding arrears the council only introduced an enforcement policy on the non-payment of charges at the beginning of this year.
In July 2008 the council issued 7,770 letters to householders with an accumulated debt of e4,652,242.
In response, 2,743 payments amounting to e556,927 were received to August 22, which amounts to 12 per cent of the total accumulated debt. In all 2,065 accounts were cleared in full.
In other cases agreements to pay by installment were set up due to the personal circumstances of the householders.
Michael Hogan, head of finance for the council said: “Customers are also encouraged to apply for waivers where they feel they would qualify which can result in the granting of waivers for multiple years.
“The next phase will utilise debt collection agencies to pursue outstanding amounts, up to and including litigation, if necessary.”
For the year 2000 to 2007 the council had a cumulative figure on its waste account of e123.6 million. Of this total, the council collected e84.8 million or 69 per cent of the debt. They waived e9.9 million or eight per cent and the sum outstanding was e28.9 or 23 per cent of the total.
However, while Mr Hogan pointed out that the local authority had waived e9.9 million, he noted that up to e22.9million would be eligible to be waived.
“If that is correct the amount of arrears actually collectable is e15.9 million or 12.9 per cent of cumulative debt,” Mr Hogan added. “We appreciate the support of all our customers, both current and past, who have paid their charges.”

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