Enright Welcomes Council Cash Reserve U-Turn

DOWN District Downpatrick Councillor Cadogan Enright’s has welcomed a decision taken to allow “excessive cash reserves” in the Council to be used to help keep the next round of rates at a lower level preventing a huge hike being passed on to the ratepayer.

Down News understands that these cash reserves can now be used by the Council to draw down which were previously unavailable. 

Cllr Enright, a qualified Chartered Accountant, was the only councilor to vote against the adoption of Down Districts Annual Accounts last year. At the time he maintained that the Council had over-provided in its cash reserves by at least 3 to 4 million pounds.

Cadogan Enright said, “Following my defeat in March 2011 by a margin of 22 to 1 on this issue, I referred the matter to the external auditor, the audit committee and managed with the help of two other councillors to have the internal auditor spend time investigating this matter.

Councillor Cadogan Enright has welcomed a Council decision to allow funds to be drawn down from cash reserves if required.

“The Council’s turnover was estimated to be £18 million this year, but cash reserves had been allowed to accumulate to well over £10 million. Ignoring specific reserves, our closing current cash balance last year was standing at £4.9 million, compared to Newry and Mourne at £0.6, Ards and Castlereagh both at £1.3 and Armagh at £0.1 million. Were we to merge with Newry and Mourne as planned, this would be the equivalent of giving each person living in Newry and Mourne a present of £26 – a £2.5 million ‘hello present”, explained Cllr Enright.

“In addition to this, I disputed the entire provision of £3.7 million of additional reserves earmarked to decommission Drumnakelly waste dump. I believe we are only legally and environmentally required to provide for decommissioning for a maximum of 30 years after its closure, not the 60 proposed by management.

"We are also allowed to recognize the future value of income from renewable energy and, in particular electricity generated from methane at the dump. Newry and Mourne have done this and as a result only have a fraction of our reserves for the same purpose.

“Having attended audit and strategic resource committee meetings over the last 18 months I am now certain that all technical questions about this matter have now been resolved. The bigger parties are now faced with estimates of 20 to 30% of rates increases over the next four years, and have been forced to come round to my point of view to be able to achieve an acceptable rates figure. We have at least £4 million is reserves available to use before the merger with Newry and Mourne Council,” added Cllr Enright.

He  also thanked fellow Councilors John Doris and Eamon Mac Con Midhe for their support in pursuing this matter, saying “Cllr Mac Con Midhe has proved to be an excellent Audit Committee Chairperson, not afraid to take on the experts and I am grateful for his support”.

Cllr Eamonn Mac Con Midhe said, "We have made considerable progress in this area. Generally we do have to look hard a the sustainability and efficiency of environmental management within the Council as it has proven to be expensive over the past couple of years and just improve our basic management. We have to look at how we are working and paying outside bodies too and evaluate this. 

"It was a big cost saving for the Council to have the decommissioning of the Drumnakelly dump reduced to 30 years from the original 60 years as planned. This will save Council and the ratepayers a lot of money."

A Down Council spokesperson was currently unavailable for comment in going to print but a full response will be made available in due course.