Dáil Éireann Debate, Thursday - 4 November 2004
10 Mr. Stanton asked the Minister for the Environment, Heritage and Local Government the funding made available by his Department to Cork County Council with reference to the disabled person’s grant and the essential repair grant scheme; the directions given by his Department with reference to these schemes to the council in 2003 and 2004; and if he will make a statement on the matter. [27445/04]
View answerThe capital allocation to Cork County Council, covering three local authorities, Cork north, south and west, in 2003 for the payment of disabled person's and essential repairs grants was €6,409,000. This amount was broken down between an initial allocation of €6,009,000, an additional allocation of €700,000 to Cork south and a saving of €300,000 by Cork West County Council.
The council's total expenditure on the schemes in 2003 was €6,646,491. A capital allocation of €7.315 million was made by my Department to Cork County Council for 2004. This was based on the council's estimated demand of €8 million for 2004 and its expenditure level of €6.6 million in 2003.
My Department's letter of allocation advised that where the notified allocation was likely to be either inadequate or surplus to requirements, the Department should be informed so as to facilitate reallocation of the funds and maximise the effectiveness of the programme.
My Department was informed by the council in a letter dated 21 September 2004 that payments in 2004 in the council areas of Cork north, south and west would total €2.3 million, although the allocation was €7.3 million. The stated reason for this low level of payments was the suspension of approvals by the council in 2003 due to financial constraints, which had the effect of delaying the subsequent commencement and-or completion of works in 2004. A new disabled person's grant scheme was prepared by Cork County Council during 2003 which has now been adopted and is being implemented.
It has been made clear to the council that under-spending of this magnitude is of serious concern to my Department, given the need for assistance under the schemes countrywide. The council has indicated it has now begun approving grants on the basis of the revised scheme and that this will be reflected in the payments for 2005.
The original provision for disabled person's and essential repairs grant schemes in 2004 was €65 million, an increase of 12% on the final allocation of €58 million for 2003. A further €7.7 million has been allocated to local authorities that sought increases in the past two months, thus increasing the total allocation to €72.7 million. I am confident the majority of local authorities will spend their full allocation this year.
The Minister of State referred to the suspension of the scheme. Was the suspension initiated by the Department or was it solely the decision of the council? Will he provide more detail on why the scheme was suspended and for how long? The council is unable to meet its allocation this year. Will the Minister of State guarantee this will not affect future allocations?
The administration of schemes is a matter for each local authority while we look after the general framework of the schemes. The Department did not order the suspension last year. Five years ago the maximum grant to an individual under the scheme increased from in the region of €10,000 to €20,000. Nationally, the number of approvals under the scheme trebled in the past five or six years and the level of payment increased almost sixfold, which is an extraordinary increase.
Adjacent counties with similar age profiles give this matter different priority and put different resources into it. The Department pays two thirds of the grant while local authorities provide one third from revenue receipts. Some local authorities were allowed to borrow their one third contribution. In recent years we have tried to bring home to them that they should not do this because they are building up problems for themselves. The provision of a one third contribution remains the function of local authorities.
Did the direction to cease borrowing come from the Department? Was it a big factor in the suspension of Cork County Council's schemes?
Yes. We informed councils that this is not capital expenditure, it is current expenditure, of which the Department provides two thirds and councils provide one third. In recent years we have brought this point home to local authorities. As I said, some have been better organised than others in managing their affairs. Cork County Council asked for €8 million. We asked all local authorities if they had made provision for their contributions in their estimates. That was the basis on which it applied for €8 million. We were not very pleased when we heard in September that it was not just shy 5% or 10% but that it spent €2.3 million when the allocation was €7.3 million.
This will not be held against the council in future. I have seen letters sent out by local authorities which imply that cutbacks are being effected and that this, that and the other thing are in store. Overall expenditure on this scheme has rocketed, as has spending on the housing aid for the elderly scheme, where we increased this year's allocation. I was not too pleased with Cork this year but we will not hold it against it, provided it makes allocation in future. That is the message Deputy Stanton should give to councillors, they must provide for their one third contribution.
Written answers follow Adjournment debate.
