Calls for change as over €5m owed in derelict site levies in Cork city 

CORK City Council's collection of derelict site levies “is just not working”, a Cork activist has stated, after it emerged there is over €5 million outstanding.

Cork City Council confirmed to The Echo that, while it collected around €1.1m in derelict site levies between 2020 and 2023, a total of €5m remains outstanding.

Figures provided to The Echo show that the total invoiced amount in 2020 was €1.74 million and the total collected was €163,231.

In 2021, the total invoiced amount was €1.75 million and the total collected was €570,143 while the total amount invoiced in 2022 was €1.7 million and the total collected was €284,565.

As of July 2023, the total invoiced amount was €1 million and the total collected was €84,672. The council also confirmed that the levy collection rate from 2020 to 2022 was 19.6%. 

Cork activist Frank O'Connor, who along with his partner Jude Sherry has been highlighting dereliction in Cork, said that the current levy collection model has been in place for 33 years is not working. He suggested that Revenue step in to collect the levies owed.

Mr O'Connor described the current collection rate in Cork city (19.6%) as a significant drop compared to 2018/19 rate, which he said was around 30%.

The question to ask is why we are continuing in Cork and nationally with a process that we’re supposed to trust but doesn’t work,” he said.

“The system isn’t working. I would argue that if you put the collection onto Revenue rather than onto the local authorities, straight away that would be a very positive step forward.” 

Mr O’Connor said there is money being lost that could be reinvested in housing. He added that, in 2020, he and his partner Jude found there were 700 derelict sites within 2km of the city centre. He said that the council reported 95 on the register, adding: 

“There’s a massive difference between what they’re putting on the register and what actually is there so that’s a problem straight away."

In response to a question submitted to council by Councillor Thomas Moloney (Ind) ahead of a recent Cork City Council meeting, Director of Services, Fearghal Reidy, confirmed that Cork City Council levied a total of 246 properties under the Derelict Sites Act in the past four years.

Mr Reidy confirmed there were 67 properties levied in 2020; 61 in 2021; 57 in 2022; and 61 in 2023.

He also confirmed that Cork City Council is actively pursuing legal action on a number of fines, a move that was welcomed by Sinn Féin TD Thomas Gould.

“I welcome news that Cork City Council is seeking legal action over unpaid derelict sites levies,” the Cork TD said. 

He added, however, that it is “disappointing” to see a drop off in levies collected in 2022 when compared with 2021.

“I hope that full-year figures for 2023 do not make a trend of this drop. 

"The reality is though that Cork City Council is outperforming many local authorities in the collection of the levy.

“The minister has convened a review of the Derelict Sites Act that has been ongoing for nearly two years now. It is time for this review to be reported and any necessary changes be made.” 

Speaking to The Echo, Councillor Thomas Moloney said: “I believe there is an opportunity to collect a lot more money from the direct sites across the city and/or for the council to get a lot more accretive in the collection of fines."
He also highlighted the need for the council "to be much more aggressive and proactive in the compulsory purchase of the properties that the owners don’t engage proactively [with the council over], and turn them around for people to be able to purchase and develop them".