Whopping rate arrears problem
Wednesday, 9 April 2008
Ratepayers in North Down and Ards owe over £10million in arrears, it has been revealed.
The figures were confirmed by Finance Minister Peter Robinson following a parliamentary question from Ards councillor and MLA, Simon Hamilton.
According to the figures, ratepayers in Ards owe £4,880,176 while in North Down they owe £5,228,314.
Land and Property Services (LPS) confirmed to The CT that part of the problem is that its revenue collection computer system action to recover rating debt started 12 weeks later than usual during the last financial year.
“This delay affected the total amount of revenue collected by LPS,” a spokesperson said.
The agency said its strategy for pursuing arrears “was revised in August 2007 taking account of best practice elsewhere”.
“Implementation of the revised strategy has reduced the level of rating debt outstanding at March 31, 2007, from £88m to £40m,” a spokeperson said.
“The strategy has been updated for 2008/2009 and the reduction of rating debt continues to be a key priority.”
Responding to the figures, Mr Hamilton described them as a “shock”. ”People who are liable for rates should not be able to get away without paying their way,” Mr Hamilton said.
“We might all think that our rates bills are too high but we cannot absolve ourselves of our responsibility to make a lawful financial contribution to society.”
Mr Hamilton said the high figures revealed were in part so bad “because of failings within the rating system itself”. “There are well recognised and long outstanding problems with the new IT system used by Land and Property Services which deals with revenue collection,” Mr Hamilton continued.
“The introduction of a new rating system by the Direct Rule administration based upon a house’s capital value also seems to have caused massive administrative upheaval with the result that any attempt to legally recovery rates arrears during 2006/2007 was set aside.
“When these two factors are considered, the scale of the outstanding rates... is not such a surprise if though no less appalling.
“I very much welcome the commitment by Land and Property Services to tackle rates arrears and the confirmation by the Minister that LPS will start issuing legal proceedings once again in June of this year.”
Mr Hamilton said the “harsh lesson” that must be sent to rates dodgers is that they will not be able to evade their responsibility.
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