By Jack Thomson

Copyright dailyrecord

A councillor has called for more education on Renfrewshire Council’s process for writing off irrecoverable debt as it prepares to wipe out approximately £550,000. The step has been authorised after the recovery of sums from a number of individuals and companies was no longer considered “viable” by finance officials. A total amount of £553,486.52 was approved at the local authority’s finance, resources and customer services policy board yesterday. Provost Lorraine Cameron, an SNP representative for Paisley Southwest, described the situation as not a “new thing” but as something that has been “happening for decades” at the meeting. She said: “Education is really, really important, especially for elected members, and perhaps it would be helpful if we could advise elected members on the finer details of the process that is used in the collection of debt. “I think what’s worrying is that this is not just a new thing. It’s not just been happening for years, it’s been happening for decades – 26 years I’ve been on this council and every single year I have sat and watched the write-off of debt happening. “I’ve also witnessed some of the people who have had debt written off move on to build new businesses in Renfrewshire again, sometimes more than one successful business. “And it’s extremely galling when that happens, when everyone knows that they had the capabilities likely of paying off that debt, but because of some legal red tape, they don’t have to any more because they’ve dissolved their business. “I think perhaps a wee bit of education for the elected members around this and then we’d be, I think, more able to be able to tell the public what the process actually is; help them understand it a wee bit more.” Councillor John Shaw, SNP board convener and a representative for Renfrew North and Braehead, responded: “We’ve run training on this several times over my years as convener. I’m happy to arrange another session.” Financial regulations stipulate a report on the write-off of sums in excess of £10,000 is submitted to the board for consideration. A paper put together by Emma Shields, strategic service delivery manager, explained the council had already “pursued” the debts in question before adding it is now “considered prudent” to write off the outstanding balance. The document said: “The debt recovery process involves extensive effort by the council and its collection agents to locate the debtor and recover the debt. “During this process a stage can be reached when it is recognised that the recovery of the sums is no longer viable and it is prudent to write off the recovery of the outstanding liability. “The council has already pursued each of the debts summarised…through its follow-up cycle and it is considered prudent to write off the outstanding balance. “The approval for the write-off will enable the council to prudently reflect within the financial accounts an accurate representation of the collectable debt.” The report said the council continues to “monitor the accounts” and, where the circumstances of the debtor change, will “instigate further recovery action” when appropriate to do so. The debts cover council tax (£54,761.12), non-domestic rates (£388,058.21), housing benefit overpayments (£30,246.53) and sundry debtors (£80,420.66). It comes months after a sum of £422,265.99 of irrecoverable debt was written off by the council having been rubber-stamped by the board in February. Don’t miss the latest Renfrewshire headlines – you can sign up to our free daily newsletter here