Dáil Éireann Debate, Tuesday - 19 November 2013
418. Deputy Joan Collins asked the Minister for the Environment, Community and Local Government if his attention has been drawn to the fact that Sligo County Council is the only local authority in the State that has consistently, year after year, produced a deficit in its revenue account; if it is his intention to provide the council with a bailout when the new county manager takes office in 2014; and if he will make a statement on the matter. [48837/13]
View answer419. Deputy Joan Collins asked the Minister for the Environment, Community and Local Government if his attention has been drawn to the fact that for the past number of years the majority of members of Sligo County Council have adopted annual budgets recommended by the Sligo county manager that have led to massive deficits in the council's revenue budget each year; if his attention has been drawn to the fact that the accumulated debt of Sligo County Council is currently in excess of €80 million; if his attention has been drawn to the fact that because of its grave financial position, the council's bank has refused to increase its overdraft limit notwithstanding that such increase was approved by his Department; and if he will make a statement on the matter. [48838/13]
View answer421. Deputy Joan Collins asked the Minister for the Environment, Community and Local Government if his attention has been drawn to the fact that Sligo County Council is the worst performing council in the country in terms of the management of its finances; if his attention has been drawn to the fact that the council produces a deficit in its revenue account each year; that earlier this year, as in previous years when the council's bank overdraft limit had been reached, the elected council, on the recommendation of the county manager and his management team, converted the overdraft to a term loan; his views on whether the ongoing conversion of Sligo County Council overdrafts to term loans is sustainable; the action he will take to stop this practice; and if he will make a statement on the matter. [48840/13]
View answerI propose to take Questions Nos. 418, 419 and 421 together.
I refer to the reply to Questions Nos. 118 and 119 of 14 November 2013 in which I stated that it is a matter for each local authority, including Sligo County Council, to manage its own day-to-day finances in a prudent and sustainable manner. The Action Programme for Effective Local Government, Putting People First, which was published in October 2012, sets out Government policy in terms of a comprehensive range of reforms in relation to local government structures, functions, funding, governance and operational matters. A key objective of the local government reform programme is to address weaknesses in the existing system, including greater financial discretion for local authorities. These issues are being addressed in the reform programme, particularly in the context of the Local Government Bill 2013, which is currently on Second Stage in the Dáil.
It is necessary that local authorities have recourse to overdrafts from time to time as capital spending is funded in arrears and the timing of local authority income such as commercial rates, charges, and rents will not always match expenditure. The requirement for Sligo County Council to continue to deal in a prudent manner with its finances, to find expenditure savings and efficiencies, particularly in the context of its 201 4 budget, and to deal with the accumulated revenue deficit, remains.
