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Members of Fermoy Town Council were startled to hear that they may have paid over €1.3M to Cork County Council for water services they didn’t need to pay for. Photo: iStock

Members of Fermoy Town Council were startled, to say the least, to hear at their monthly meeting on Tuesday night that they may have paid over €1.3M to Cork County Council for water services they didn't need to pay for.

Mayor Olive Corcoran raised the matter, seeking details of how the county council could reimburse them. It caused no little consternation and resulted in a lengthy discussion.

It was the Mayor's contention that a sum of €187,000 had been set aside annually in their budget from 2004 to 2011 to pay Cork County Council for water services but it was a service that they had no obligation to pay. She said she'd been told the same mistake had been made by a lot of town councils. The money was handed over to the county council but it wasn't referred to any of the auditors' reports up until 2011.

"Why wasn't it?" she wanted to know. "I'm going to fight tooth and nail to have this reimbursed in full or in part," she vowed. She said she wasn't blaming the various chairs of the town council over the years, nor was it the fault of the executive, she stressed.

Cllr Michael Hanley asked what the manager's response was on the matter. "We need clarification. It would be a serious matter if we were blindfolded into this. If it was deliberate obfuscation and not mentioned anywhere in the books it would be a most serious offence," he stated.

It was a serious issue for new town manager Niall Healy to contend with at his very first meeting. He explained that in 2004 an arrangement had been entered into by some town councils with Cork County Council whereby the county council would take over responsibility for some water services. The council would be a half agent of the town council in that regard. Eight of the nine town councils in the county engaged in the contractual arrangement, he explained, Mallow being the exception. The town council there has since done so, he said.

Town Clerk Pauline Moriarty, told members it was included in the budget every year. "It's there for you to see, it is accounted for in our budget."

The Mayor said they'd ok'd it not knowing they had a choice. She asked if they had to ok it for this year. The town clerk advised that it is included but she hadn't paid it yet. It will be in the budget and they will be asked to approve it in passing the budget.

Cllr Hanley said he didn't recall any explanation being given.

"I know how we did our business here and we signed up to this by adopting the budget. That legitimised the exercise," Cllr Tadhg O'Donovan said. Even if they had paid over the money in error, he felt they wouldn't get it back from the county council.

The Mayor again insisted she'd been told by one auditor: "We were entitled to the services without paying." Cllr O'Donovan said he didn't deny what she was saying but there was no money, no 'pot of gold' to be got back.

"It was just bad business in 2004 I'd say. But Mayor you are very wrong to say we don't have a choice. We do when the budget is put in front of us," said Cllr Seamus Coleman. "I agree with Tadhg, we'd be joking ourselves if we thought the council is going to give it back. It was bad accounting and bad accounting practices, that's all. I suggest you make your stand when the budget is in front of us," he added.

The Mayor thought they should vote against paying the money this year. "It was wrong," she insisted. Cllr Colette Dolan Moore said more detail and more clarification was needed. Cllr Noel McCarthy agreed. He suggested the Finance Officer or other officials attend the meeting and explain it to them. Cllr Hanley agreed.

Cllr John Murphy recalled water problems they had in Knockananaig which they, as a town council, couldn't afford to have fixed. "But Cork County Council should have paid," he was told by the Mayor.

The town manager agreed clarity was required and he undertook to seek that. "You are owed an explanation," he agreed. It was decided to request the former Head of Finance to attend their next meeting, which will be held before this year's budget meeting, to explain.

"The onus is on you now," Cllr Hanley told the town manager, saying it was like St Thomas asking to see and put his hands in the wounds of Jesus before he'd believe he was resurrected!

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