Deferral of €15m loans approval rejected

CONFUSION reigned for a period among Clare County Councillors at a meeting this week before they rejected a proposal for a deferral of approval for new loans totalling almost €15 million.

 

Councillor Gerry Flynn proposed at a council meeting on Monday that approval for the raising of a loan of €2.8m to fund the controversial housing scheme at Glaise na Rinne, Shannon should be deferred for a week, pending the provision of more information about the scheme.

The Shannon councillor claimed that conflicting information had been provided by the council relating to a cost of €5.061m for the project when a figure of €4.2m was mentioned in official correspondence.

A number of councillors also expressed dissatisfaction with the level of detail provided concerning unfunded expenditure, which is being paid for on overdraft.

Councillor PJ Kelly claimed the Local Government Act doesn’t allow the county manager, Tom Coughlan, to obtain retrospective approval for unapproved loans, apart from exceptional circumstances such as public health.

The council submitted an application to the Department of the Environment seeking approval to borrow €10m.

However, the department confirmed approval for the raising of loans to the value of €7.7m only in respect of over-runs for Lisdoonvarna Ballyvaughan WSS (€848,000); Ennis Water Treatment (€1.1m); Newmarket WSS (€1.5m); Gillogue Service Land Initiative (€1.3m); Clareville (€627,000) and Feakle/Scariff/ Quilty Sewerage (€2.335m).

Members’ approval was also sought to raise a loan of €4.311m to fund expenditure already incurred on the road restoration at Lisdoonvarna subsequent to the provision of water/sewerage scheme in the town to the tune of €1,021m.

Councillors were asked for their consent to raise a loan for unfunded expenditure of €3.290m on the road off the Gort Road, Ennis to the Information Age Park.

Sixteen affordable houses at Glaise na Rinne, Shannon are completed by the council and sales are currently being arranged. The final cost of €4.2m is to be part-funded from the sale proceeds of the houses, bond income, Part Five funds and site subsidy.

When these funds are applied, it is estimated that the shortfall on this scheme will be close to €1m. The approval of councillors was sought to raise a loan of €2.8 million, which is the current debit balance on the scheme.

Director of services, Bernadette Kinsella explained the figure of €5.0651m referred to the cost of the 22 houses, while the €4.2m concerned the 16 affordable units.

Councillor Flynn proposed a decision on the loan for €4.2m be deferred in the interests of openness and transparency and this was supported by 16 councillors, after a show of hands. There were 30 members in the chamber.

However, this proposal was defeated by 18 votes to 14 when two councillors came back into the meeting after Councillor Flynn requested a roll call should be taken, which any councillor could request under standing orders. This prompted a quip from Councillor Joe Arkins that two councillors were “lost at sea”.

Another proposal to defer approval for the €4.311m loan, which was proposed by Councillor Arkins, was defeated on a show of hands, despite calls for an individual recorded roll call.

Meetings’ administrator, Michael McNamara pointed out Mayor of Clare, Councillor Pat Daly has the discretion under standing orders to request a show of hands for a vote, which he subsequently exercised.