Rates shock for Limavady
Thursday, 16 October 2008
THE Ministry of Defence (MoD) is due a £1 million rates rebate on the properties they occupy in the Limavady Borough, it has been revealed.
Limavady ratepayers will fitting a portion of the bill to the tune of over £390,000, with the remaining balance to be covered by the Regional Authority.
Sinn Féin has reacted angrily to the news of the rates rebate, which relate to MoD properties at Ballykelly Barracks, Magilligan Point and Clooney Road .
The party's local economic spokesperson Cllr Paddy Butcher said: "We are delighted to see the British Army demilitarise Ballykelly but we are not happy with the price to be paid.
“The rates assessment regulations were changed in 2003 and the MOD have been granted a rebate totalling £926,242 backdated to the year ending 2004.
“£536,104 will be reclaimed from the Regional Authority and the rate payers of Limavady will have to pay the balance of £390,139."
Cllr Butcher who sits on the Limavady Audit Committee said the issue had been discussed at last week's meeting of that committee.
He said: "This will totally wipe out our reserves which already fall well below the minimum £700,000 level recommended by the Local Government Auditor. We are now running on an empty tank. This council's finalisation of the Penny Product for 2008/2009 will have to be adjusted by £390,000.
“We will demand that council officials appeal this decision. Sinn Féin contends that if the Rate Valuation Authority is responsible for this error then they should pick up the bill not the rate payers of Limavady. We will also be demanding an explanation as to why we were not informed of the MOD appeal at an earlier stage. When it comes to financial management surprises like this are just not acceptable. With the Borough reeling from soaring unemployment this is the last thing we need."
Limavady Borough Council Chief Executive Liam Flanigan has confirmed the figures. He said: "The figures relating to the Ministry of Defence appeal are correct, however, the appeal is still ongoing, although this is the likely outcome. This would greatly lessen our reserves though not totally wipe them out."
An MoD spokesperson has commented: "The MoD has a duty to ensure tax payer's money is properly accounted for and as such it complies fully with current legislation on the assessment, payment and processing pertaining to appeals where it is believed an overpayment may have occurred.
“The appeals procedure and rebate of rates where over payment has occurred is a process common to domestic, business and crown properties."
