Dáil Éireann Debate, Thursday - 9 May 2013
140. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government the local authorities if any that have Part V incomes on deposit which were taken in lieu of houses; the amount by authority; if those sums are set against the general Government debt; if not, the way they may be spent; and if he will make a statement on the matter. [21944/13]
View answerMy Department collates and publishes a wide range of housing and planning statistics that inform the preparation and evaluation of policy, and those data are available on my Department’s website at www.environ.ie.
Data on the number of housing units and / or lands transferred under Part V of the Planning and Development Acts and on payments in lieu of such transfers, broken down by year and by local authority, are included within this range.
Comprehensive guidelines have issued to local authorities in relation to Part V including advice in relation to the use of Part V funds. These funds can only be used as capital by local authorities for their Part V functions or functions under the Housing Acts. Data regarding the specific application of these funds are not collated by the Department.
In February 2009, my Department set out details of the financial requirements for local authorities relating to their overall management of capital and current accounts. These requirements flow directly from the requirement for Government finances as a whole to be managed in accordance with the Stability and Growth Pact established under the Maastricht Treaty, and the associated limitation on budget deficits.
The local government sector must not impact negatively on the General Government Balance (GGB) in any one year. The downturn in the economy and substantial pressures on Government funding generally require a sharp focus in all sectors, including local government, to ensure effective control and management of public finances.
In order to stay within the overall GGB limit, it is necessary for local authorities to maintain both their current and capital accounts broadly in balance. The only restriction on local authorities is that, in aggregate, capital income equals capital expenditure in the year. Balance is only required at an overall level and this allows considerable scope for authorities to draw on their existing capital reserves as an element of their overall investment programme. The precise manner in which capital and current accounts are managed in order to achieve the overall balance necessary is a matter for individual local authorities.
While I appreciate that these GGB requirements impose limitations on local authorities, there are considerable funding constraints at all levels of Government. It is a matter for every local authority to determine its own spending priorities in the context of the annual budgetary process having regard to both locally identified needs and available resources within the GGB limits as set out.
