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Thread: DCC owed €237m from commercial debtors -wants Social Welfare tentants targeted!

  1. #1
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    Default DCC owed €237m from commercial debtors -wants Social Welfare tentants targeted!

    The country's biggest local authority, Dublin City Council, is owed a massive €380m by various debtors -- and a new report urges that rents be deducted directly from social welfare payments paid to 70 per cent of its tenants.

    Figures given of over €237m owed by commercial debtors to the end of last June

    The council is also owed substantial monies by the Government, with over €52m outstanding by June

    Another €40m is owed from commercial debtors on invoices raised for the commercial activities of the city council including €3m owed by the Dublin Docklands Authority, over €5m for ambulance services, and over €2m for fog monitoring.

    Rent arrears have increased from around €5m in 2002 to nearly €20m in 2010 and have stabilised in 2011-12

    Developers also owe more than €46m in development levies to the council.

    Source

    Describing the income of over €72m from 24,000 tenants this year as the single most important source of council revenue after rates, the report said
    "Direct deduction at source from social welfare payments will result in substantial savings and efficiencies".
    Also SW tenants are a captive audience!
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  2. #2
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    Default Re: DCC owed €237m from commercial debtors -wants Social Welfare tentants targeted!

    There's a case to be made for having the council notify the Revenue when a business gets into rates arrears. A business that isn't covering the basics must surely be at high risk of trousering VAT, PAYE and PRSI as well.

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    Default Re: DCC owed €237m from commercial debtors -wants Social Welfare tentants targeted!

    Quote Originally Posted by Baron von Biffo View Post
    There's a case to be made for having the council notify the Revenue when a business gets into rates arrears. A business that isn't covering the basics must surely be at high risk of trousering VAT, PAYE and PRSI as well.
    Businesses that can't afford to pay rates will have to close down.

    For many of them, the main reason they can't is that they are paying inflated rents set during the boom. As the numbers of businesses decrease, eventually rents will collapse, due to lack of demand. This along with mortgage defaults will lead to banking failure and demand for a further bank bailout.

    Dereliction, as well as lack of rates income, is likely to be the problem for DCC at that stage.

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    Default Re: DCC owed €237m from commercial debtors -wants Social Welfare tentants targeted!

    Quote Originally Posted by C. Flower View Post
    Businesses that can't afford to pay rates will have to close down.

    For many of them, the main reason they can't is that they are paying inflated rents set during the boom. As the numbers of businesses decrease, eventually rents will collapse, due to lack of demand. This along with mortgage defaults will lead to banking failure and demand for a further bank bailout.

    Dereliction, as well as lack of rates income, is likely to be the problem for DCC at that stage.
    If they can't afford to pay their bills they're not viable businesses and it's better that they close quickly.

    If a business isn't paying rates or taxes it's trading at an advantage to its honest competitors thus putting good businesses at risk.

  5. #5
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    Default Re: DCC owed €237m from commercial debtors -wants Social Welfare tentants targeted!

    Council tenants (and anyone else) on social welfare who collect their payments at a Post Office, already have the option to have rent and other utilities deducted from their payment at source.

    It's called the Houshold Budget service, is easy to sign up for at the post office, and means that the money paid out to the customer is what they have left to spend for the week, knowing the won't go inte arrears or risk getting the light or heat cut off by the utility companies.

    Many people find it very useful, and I admit to being conflicted on this - on the one hand making it the deduction compulsory takes away what little autonomy and freedom people have, which can be disempowering.

    On the other, from the council's point of view, tenants are getting quality rental accommodation (though not always,admittedly) for a low rent reflecting their income.
    There were never any private-sector-greed-inflated rent levels here.The least they as a landlord can expect is that people will pay the rent due.

    Having worked in this area, I've seen first hand how there are some people (not all, but a few) who expect what I call, "scratch me arse" money. I mean people who, while otherwise capable, are not able to take responsibility for even the smallest details of their lives. Eg expecting (and demanding) the council or the welfare officer replace their broken toilet seats or even lightbulbs. To me that's real disempowerment.

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