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Dáil Éireann debate -
Wednesday, 15 Apr 1970

Vol. 245 No. 8

Ceisteanna—Questions. Oral Answers. - Recoupment of Local Authority Expenditure.

12.

asked the Minister for Local Government the proportion of the total revenue expenditure of Waterford County Council recoupable by State grants for each of the financial years 1956-57, 1964-65 and 1970-71.

asked the Minister for Local Government the proportion of the total revenue expenditure of Waterford Borough Council recoupable by State grants for each of the financial years 1956-57, 1964-65 and 1970-71.

I propose, with your permission, a Cheann Comhairle, to take Questions Nos. 12 and 13 together.

The information requested in respect of the financial years 1956-57 and 1964-65 is available from the returns of local taxation for those years. The proportions of total revenue expenditure to be met by State grants in the current financial year in respect of Waterford County Council and Waterford Corporation are estimated to be 64.4 per cent and 30.9 per cent respectively.

Concerning Waterford Borough Council is not the figure of 30.9 per cent rather low vis-á-vis the national average? Could the Minister say why it is so low?

There is no agricultural land in the Waterford Borough area.

14.

asked the Minister for Local Government if he is aware that the expenses of financing local authorities' current and capital expenditure i.e. by way of overdraft charges due to the delay in his Department recouping local authorities various subsidies, are becoming an increasing burden on ratepayers; and if he will make a statement on the matter.

I am not so aware.

The Minister is not aware that interest on overdraft accounts is becoming an increasing burden on taxpayers in local authority areas?

On ratepayers?

Ratepayers.

The figures do not appear to show that over the past three years, but certainly any increased burden there is is not due to any change in the pattern of paying grants by my Department.

Is the Minister aware that because of the fact that the rates were going up so fast, the local authorities used the balances which they had over a number of years and, from the beginning of April until August, they are mostly working on overdrafts and again from about January to the end of March?

Although there has been a tendency for the cost of overdrafts to increase the amount paid in interest on overdrafts by county councils, county boroughs and urban districts has increased only marginally between 1965-66 when it was £327,188, and 1968-69 when it was £331,792. So the increase has been very marginal in view of the increased cost of overdrafts.

Would the Minister not agree that his Department are very slow to pay grants for road improvements, for instance, where a large capital requisition is required?

I would say the Minister is wrong.

15.

asked the Minister for Local Government if he will consider recouping in full to local authorities the cost of financing forward land acquisition; and if he will make a statement on the matter.

Land acquisition by local authorities is normally financed as part of the housing, sanitary services, roads or other project of which it forms an integral part. In this way the cost of acquisition attracts the appropriate State subsidy or grant. Bridging finance to cover the period between the time of acquisition of the land and the carrying out of the works for which the land is acquired is normally met by overdraft accommodation or by the local authorities' internal resources. Where necessary, special longer-term loans for forward land acquisition are made available from the Local Loans Fund. These arrangements for the financing of forward land acquisition have worked satisfactorily and I see no need or justification for recouping in full to local authorities the cost of forward land acquisition.

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