Dáil Éireann Debate, Tuesday - 14 May 2013
425. Deputy Michael McCarthy asked the Minister for the Environment, Community and Local Government in a situation where residential estates currently pay for the maintenance of their green areas, if the respective local authority will now undertake this task in view of the additional revenue gained through the collection of the local property tax; and if he will make a statement on the matter. [22157/13]
View answer434. Deputy Noel Harrington asked the Minister for the Environment, Community and Local Government the way he intends to distribute the remaining 20% of the revenue received from the local property tax in view of the concerns of a person (details supplied) in County Cork; and if he will make a statement on the matter. [22401/13]
View answerI propose to take Questions Nos. 425 and 434 together.
Under section 157 of the Finance (Local Property Tax) Act 2012, commencing in 2014, the Minister for Finance will pay into the Local Government Fund an amount equivalent to the Local Property Tax paid into the Central Fund during that year. Questions concerning the use of Local Property Tax revenue raised in 2013 should be directed to my colleague, the Minister for Finance.
The Government has indicated an intention to move, from 2014, to 80% retention of all Local Property Tax receipts within the local authority area where the Tax is raised. The remaining 20% of the Tax collected nationally will be re-distributed on an equalised basis to local authorities within the context of the annual allocations of General Purpose Grants. It is a matter for each 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. The elected members of a local authority have direct responsibility in law for all reserved functions of the authority, which include adopting the annual budget, and are democratically accountable for all expenditure by the local authority.
I expect the Local Property Tax to have multiple benefits, including a more sustainable and resilient system of funding for local authorities and therefore a sounder financial footing for the provision of essential local services; greater local scope for financial decision making concerning service provision - in particular, the inclusion of the local variation mechanism from 2015 will further increase the autonomy of local authorities; and a strengthening of democracy at local level with a more active relationship between local authorities and local electorates. A stronger democratic relationship and clearer lines of accountability can only have a beneficial impact on service provision from the perspective of the service user. Specific queries concerning planned usage of future Local Property Tax revenue should be directed to the relevant local authority.
