Recession bites hard on traders
THE revelation that non-domestic and household rate arrears in Northern Ireland have reached record levels of £157m is a very alarming development, particularly as the figure has more than trebled in four years since it stood at £48m in 2006.
About two-thirds of current arrears are owed by non-domestic ratepayers like struggling businesses, shops and factories and this is obviously the dire effects of the current economic recession which has resulted in an increased number of company closures and considerably reduced takings for those still operating.
Rate arrears resulted in a record 16,000 people taken to court. This was out of 80,000 householders and almost 19,000 business owners who failed to pay up in 2009-10.
At the critical end, 1,800 properties were repossessed, causing much personal trauma.
A staggering 10m in unpaid bills was written off compared with 6m the previous year, resulting in income reduction for the Land and Property Services, the body tasked with collecting rates for the funding of essential frontline health and education services and the running of our 26 councils.
The recession has put huge financial strain on many local traders and Land and Property Services officials are prepared to discuss payment options with those in default.
The Stormont Executive has introduced measures aimed at helping companies, including the small business rate relief scheme and a freeze in real terms in the regional rate.
This is helpful, but it is imperative that revenues are maximised at a time when public finances are under such pressure.
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Thursday 24 May 2012
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