THE Ribble Valley is leading the way in Lancashire for collecting council tax despite writing off debts, new figures show.

The area has the largest recovery rate in the county despite having to write off more than £82,500 in uncollected debts, according to council bosses.

Ribble Valley Council policy and finance committee cancelled the debts, involving domestic and business tax, some of which had been outstanding since 1992.

Revenues manager Michael Harvey said that while the figure looked large, it represented just a fraction of the £21million collected in council tax each year by the authority. He said the Ribble Valley was way above the rest of the local authorities in Lancashire for collection of council taxes and still had the lowest debt figure, even though it is just over £10,000 more than the previous year.

The largest sum of money owing came from the business sector -- £57,881.41. Of this, more than £39,000 was owed by the Real Indigo Co Ltd, of Simonstone Business Park, Simonstone, which called in the receivers when it went into liquidation in June last year. The amount represents one year's business tax owed by the company for 2000.

The textile firm produced dyed yarn for the knitted denim market and employed 40 people. The company has now gone and the buildings have been taken over by Time Computers.

In a report to committee, Marshall Scott, council director of finance, said more than £310,000 had been put to one side to cover bad debts.

He said that no specific statute existed to give guidance on the circumstances under which debts in general could be written off, other than the statute of limitations. However, any debt for which recovery action had not been taken within six years still remained, although legal action could not be taken.

He said: "As a matter of law we are under an obligation to take reasonable steps to collect council tax debts and do this by issuing summonses, distraint of goods, attachment of earnings orders, benefits and committal warrants.

"However, there are many cases where people simply leave their property with arrears and where we have no forwarding address.

"Should the whereabouts of a debtor be discovered after the amount had been written off, the monies owing will be pursued."