To ensure financial stability Council must fill revenue gap left by Shannonbridge shutdown

While Offaly County Council generated a surplus of €422,000 after deducting transfers of €4.6m to reserves. The Council is still suffering the loss of rates from the closure of Shannonbridge Power Station in 2020 following 55 years in operation.

The DHLGH (Department of Housing, Local Government and Heritage) provided compensation measures to the council of €1.7m in 2023 in line with the previous two years and confirmed the provision of a further €1.7m for 2024. However, this is not guaranteed for 2025.

The details are laid out in the Statutory Audit Report to members of Offaly County Council for the year ending December 2023 prepared by Local Government Auditor, Fiona Clancy and published in January this year by DHLGH.

Ms Clancy says that as the loss of rates is a recurring reduction in the Council’s annual rates income and the Department's commitment is for 2024 only, ''it is crucial that a permanent solution be found to enable the Council to meet its obligations and to ensure its financial stability is not put at risk as a direct result of the decarbonisation agenda.''

Chief Executive officer Anna Marie Delaney, says, the closure of the plant has left the council in a ''vulnerable position.'' She says, ''communications are ongoing with the DHLGH regarding future funding requirements.'' However, she adds that ''a long-term solution to this issue is required to ensure that the future financial stability of the Council is not put at risk due to the national decarbonisation agenda.''

The audit report also reveals that housing rent arrears in the county as of December 31 amounted to €645,000 (net of credit balances of €149,000). At the year end rents and annuities in arrears for three months or more were €517,000 of which 17% is owed by 9 clients. ''Continued efforts should be concentrated on those clients where excess arrears are outstanding,'' the auditor advised.

Meanwhile the total number of overdue housing loans reached €36,000. Debit arrears reached €100,000 of which 55% related to 7 clients. On a more positve note the collection yield in respect of housing loans increased by 94% in 2023 compared to 85% in 2022.

The auditor said it was ''essential that the Council dedicate resources to the recovery of outstanding debts and consider the write-off of unsecured irrecoverable amounts.''

Responding, Ms Delaney said the ''finance department continues to engage proactively with customers of Offaly County Council. Debtor collectability across all income streams is constantly under review and appropriate bad debt provisions are made where required.''