Cork County Council collected no derelict-site levies in 2023

CORK COUNTY COUNCIL didn’t collect any derelict-site levies in 2023, while €160,000 was collected in vacant-site levies, a spokesperson has confirmed.

The disclosure follows the revelation in the auditor’s report for Cork County Council’s accounts for 2022 that it was owed €800,000 in uncollected vacant- and derelict-site levies at the end of that year.

The combined total of uncollected vacant- and derelict-site levies at the end of 2022 was €816,000, according to the report.

In a response to queries from The Echo arising out of the auditor’s report for 2022, a spokesperson said that Cork County Council had commenced “a comprehensive review of its Derelict Sites Register, including a review of the market and of changes in the ownership of properties on the Derelict Sites Register” during 2023.

“As a result of this review, and for other reasons, including instances where owners of derelict sites are deceased and where derelict sites are not within an ‘urban’ area, as defined in the Derelict Sites Act 1990, no derelict-site levies were collected in respect of 2023,” the spokesperson said.

“In December of 2023, 10 confirmed owners of derelict sites were issued with Section 22 notices, notifying them of the council’s determination of the current market value of their derelict site.

“This facilitates the issue of levy demands to the value of €87,500, subject to appeal against this determination to the Valuations Tribunal, to issue in 2024.

“Cork County Council endeavours to work with property owners to maximise the potential use of vacant and derelict properties, in an effort to promote town regeneration and bring vacant and derelict properties back in to meaningful use.

“In addition to this, Cork County Council has surveyed over 2,000 properties countywide and is now in the process of carrying out further assessments on those that are vacant and are considered to meet the legal definition of a derelict site under the Derelict Sites Act 1990.

“Where collaborative efforts fail, the Derelict Sites Act 1990 also provides for the compulsory acquisition of derelict sites by the local authority.

“In 2023, Cork County Council compulsorily acquired three derelict sites.

“Compulsory acquisition proceedings have commenced on a further three properties and files on these properties have been referred to An Bord Pleanála for consideration.”

The auditor’s report for 2022 was on the agenda for last Monday’s meeting of Cork County Council and was noted when it arose. An effort by Independent councillor Marcia D’Alton to have a brief discussion was met with an offer from the mayor of County Cork, councillor Frank O’Flynn, that a report would be issued.

The auditor’s report disclosed that just €53,000 of €999,000 levied since 2019 for the vacant-site levy had been collected by the local authority by the end of 2022. After the boundary change in 2019, which ceded some land to Cork City Council, that authority became responsible to collect €339,000 of that total. A further €128,000 was cancelled following appeals to An Bórd Pleanála.

The auditor’s report referred to the balance of €479,000 being left uncollected at the end of the year.

“Given the poor collection rate, management has made a full provision for these arrears in the adjusted financial statement (AFS),” the report said.

While no invoices for derelict-site levies were issued in 2022, a total of €3,000 in arrears was collected during the year, leaving a total uncollected at the end of the year of €337,000, the auditor’s report also stated.

“The LG auditor recommended that the council expedite the process of confirming and registering vacant, residentially zoned sites not currently included on the VSR for invoicing.

“Under the Finance Act 2021, VSL will be replaced by residential zoned-land tax in February 2024 and tax collection is to be managed by the Revenue Commissioners.”

When the item relating to the auditor’s report arose during last Monday’s meeting of the council, the last meeting of the current council, a request by the outgoing Independent councillor, Marcia D’Alton, for a brief discussion of the report, insofar as it dealt with the collection of the vacant- and derelict-site levies, prompted the response from county mayor and meeting chairman, Frank O’Flynn, that a report would be forwarded in due course.

Speaking to The Echo after the meeting, Ms D’Alton, who is standing down as an Independent councillor representing East Cork, after two terms as an elected member, and two terms prior to that on the Passage West Town Council, described the failure to discuss the issues raised in the report as “odd” and she suggested they should have been “energetically discussed” at the meeting.

“Time is being put aside to criticise Uisce Éireann, justifiably, but non-collection of rates owing on dereliction and vacancy also deserves at least an explanation,” said Ms D’Alton.

In the report, the auditor acknowledged that what was described as “significant work” had been undertaken by the council since the last audit to progress identifying and addressing potential derelict sites across each municipal district.

“This work includes the development of a countywide derelict-site procedure, workflow and template. Management has advised that the focus has been on adopting an informal approach with property owners, where possible and practicable, to achieve best outcomes.”

The auditor’s report also refers to the collection of derelict-site levies by the council and points out that no invoices were issued for derelict-site levies during 2022 and, while €3,000 in arrears was collected, there was still an outstanding €337,000 owed to the council at year end.

“Given the poor collection rate, management has made an almost full provision for these arrears in the AFS.

“It is also noted that West Cork Municipal District does not have a derelict-site register in place at time of audit.”