Dáil Éireann debate -
Wednesday, 7 May 2003

Vol. 566 No. 1

Written Answers. - Local Authority Funding.

Richard Bruton

Question:

727 Mr. R. Bruton asked the Minister for the Environment and Local Government the discussions which have taken place with the Department of Finance concerning the awarding of the benchmarking payments to staff and officials of all local authorities; if he has considered providing funding to local authorities under the local government fund; if it requires the permission of the Minister for Finance before such payments can be made available; and if he will make a statement on the matter. [11795/03]

Paul McGrath

Question:

734 Mr. P. McGrath asked the Minister for the Environment and Local Government if additional funding will be made available to local authorities to pay their employees the arrears of benchmarking due for payment in April 2003; the amount payable to each local authority for such purposes; and if he will make a statement on the matter. [12007/03]

Minister for the Environment and Local Government (Mr. Cullen)

I propose to take Questions Nos. 727 and 734 together.

An estimated €1,046 million will be available to local authorities from the local government fund in 2003 comprising €420 million in Exchequer contribution and an estimated €626 million in net motor taxation receipts. The fund is anticipated to meet some 32% of overall local authority revenue financing requirements in 2003; these will also be significantly resourced from income from local sources such as rates, charges, rents and other fees.

Under the Local Government Act 1998 the Minister for the Environment and Local Government is empowered to make payments to local authorities out of the fund. Allocations totalling €394 million from the fund have already been made to local authorities in relation to their non-national roads programmes. Further allocations from the fund in the form of general purpose grants have also been made to local authorities in the total amount of €626 million; this represents an average increase of some 6.4% over the corresponding general purpose allocations for 2002.

My Department would have joined in a number of discussions with the Department of Finance prior to the finalisation of its Estimates for 2003; these discussions included the Exchequer contribution to the local government fund. In the notification to local authorities of general purpose grants from the local government fund, it was made clear to local authorities that the allocations involved were the maximum possible in light of the current budgetary situation and that they were designed to provide reasonably for cost increases facing local authorities.

Further supplementation of the above grants to local authorities is not possible in current circumstances, and it is a matter for local authorities to exercise prudent financial arrangement in relation to 2003 requirements.