Council faces massive debts
Thursday, 2 February 2012
BALLYMONEY ratepayers could end up paying a massive £4 million of debts incurred by neighbouring councils after the changeover to the new Causeway Coast and Glens 'super council' in 2015. This is the 'worst case scenario' to be concluded from an analysis of figures recently released by the Environment Minister Alex Attwood.
Local MLAs Mervyn Storey and Jim Allister have slammed this possible scenario as 'totally unfair' and 'preposterous'.
North Antrim DUP MLA Mervyn Storey said: "It is totally unfair that Ballymoney ratepayers should pay the debts of other councils who have spent money on the provision of services that we have very little use of. Ballymoney has endeavoured to manage its debt and has done a lot better than Coleraine and Moyle. Ballymoney ratepayers should not be asked to pay the debt of other councils, especially Coleraine and Moyle."
TUV MLA Jim Allister said: "It is preposterous for Ballymoney who have been very prudent over the years to pay the debts of more spend thrift councils."
HOW COME?
In three years' time, Ballymoney is due to join Limavady, Moyle and Coleraine in the new Causeway Coast and Glens Council.
The total debt for all four councils combined currently stands at £59,113,760 million.
However it is clear from the figures released by the Minister that the debt does not break down evenly.
Coleraine has by far the biggest debt with £28,508,954 owed; Moyle owes £8, 754,809; Ballymoney owes £9,454,077 and Limavady owes £12,395,920.
Ballymoney will have around 22.8% of the population in the new area but has created only 16% of the debt.
The rates burden will be spread evenly over the new area and Ballymoney should pay approximately 22.8% of rates.
If existing boundaries disappear and finances are pooled what structure is in place to stop Ballymoney paying 22.8% of the debt as well?
We could end up paying £13.47 million, a massive £4 million more than the £9.45m actually owed.
All those years of penny pinching by Ballymoney Borough Councillors trying to keep the rates bill down will have been in vain.
Mr Storey said: "We need a financial plan that over time brings equilibrium. This is a huge issue for local and central government. I don't think the assembly can simply wipe its hands. Both need to work together to come up with a solution!"
Mr Allister said: "We cannot have a situation of drawing parts of a new area together on the basis that there is going to be resentment by one part of that new area - how will the new entity pull coherently together? There has to be a mechanism, some equalisation strategy to reduce unfairness and ensure a fresh start."
Environment Minister Alex Attwood has acknowledged that the matter poses 'a significant challenge' in the run u
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