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Tuesday, 11 Feb 2014

Written Answers Nos. 359-376

Official Engagements

Questions (359)

Éamon Ó Cuív

Question:

359. Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources if he will provide details of all official engagements by him or the Minister of State in his Department that have taken place in Northern Ireland since he took office; and if he will make a statement on the matter. [6814/14]

View answer

Written answers

Since taking office I have attended eight official engagements in Northern Ireland, details of which are set out in the following table.

Date

Purpose of engagement

Location

04/07/2011

North South Ministerial Council Meeting

Armagh

18/11/2011

North South Ministerial Council Meeting

Armagh

04/07/2012

North South Ministerial Council Meeting

Armagh

12/12/2012

North South Ministerial Council Meeting

Armagh

10/05/2013

All Ireland Energy Conference

Belfast

23/10/2013

Lunch onboard L.E Aisling

Derry

23/10/2013

North South Ministerial Council Meeting

Derry

08/11/2013

North South Ministerial Council Meeting

Armagh

07/02/2013

Bilateral with Minister Arlene Foster

Enniskillen

Minister Of State O'Dowd has attended 7 official engagements in Northern Ireland, details of which are set out as follows.

Date

Title of engagement

Location

04/07/2012

North South Ministerial Council Meeting

Armagh

04/06/2013

Launch of Thomas D'Arcy McGee Summer School

Belfast

22/10/2013

Attend opening ceremony of Turner Prize

Derry

23/10/2013

Visit to Loughs Agency

Derry

23/10/2013

Lunch on board L.E. Aisling

Derry

23/10/2013

North South Ministerial Council Meeting

Derry

08/11/2013

North South Ministerial Council Meeting

Armagh

Proposed Legislation

Questions (360)

Gerry Adams

Question:

360. Deputy Gerry Adams asked the Minister for Communications, Energy and Natural Resources the level of consultation he has undertaken with stakeholders on the new legislative proposals governing inland fisheries; if he has taken onboard the concerns of anglers regarding the compulsory angler registration charge, many of whom believe this registration charge is an attack on the tradition and way of life of angling in this State; if the new regulations will include the establishment of a national angler register or database; if any money generated by such proposals will go straight towards the development of the angling sector and the conservation and protection of the rivers and lakes of this State; when the legislative proposals will come before Dáil Éireann; and the amount of money his Department has invested in each of the past three years in much needed habitat development work, angling facility development and fisheries protection and training. [6828/14]

View answer

Written answers

I refer the Deputy to my previous replies on this matter, the most recent being on 30 January. These responses comprehensively address the issues raised by the Deputy.

On the issue of consultation, as part of the review of the Inland Fisheries legislation, I organised a series of public information and consultation meetings (Drogheda, Carrick-on-Shannon, Tuam, Clonmel and Dublin). In addition to public meetings, input was also sought through a Public Consultation Process, which was open for receipt of written submissions from 13 May to 28 June last. The submissions received from this process are available on the Department's website: www.dcenr.ie.

A question of how funding could be mobilised for the development of the sector arose as part of this consultation, and it was made clear that any such funding would have to be carefully ring-fenced and returned to individual sub-sectors in proportion to funding raised (Coarse angling, Salmon angling, etc.). There were differing views, some in support, others disagreeing. For my part I have stated my position a number of times publicly, making it clear that any funding instrument must not be divisive within the angling community and will only work if it has broad support across the angling sector. I fully appreciate the sensitivity of this issue and the conviction with which different views are held. I will be meeting with angling associations and the Board of IFI to discuss these issues further in the coming days. All of us involved with angling and inland fisheries have a role in ensuring the long term viability of this important resource and this must be our shared priority.

On the issue of investment in habitat development work, angling facility development and fisheries protection and training, these are funded via Inland Fisheries Ireland and I have asked IFI provide this information on these matters directly to the Deputy.

Broadband Service Provision

Questions (361)

Thomas Pringle

Question:

361. Deputy Thomas Pringle asked the Minister for the Environment, Community and Local Government if his Department can assist with the roll-out of fibre optic broadband to rural areas, as envisaged by the ESB (Electronic Communications Networks) Bill 2013 and under the rural development programme of the Common Agricultural Policy; and if he will make a statement on the matter. [6357/14]

View answer

Written answers

The LEADER elements of Ireland’s Rural Development Programme 2014-2020 (RDP) will primarily address Priority 6 of the European Union priorities for rural development which is promoting social inclusion, poverty reduction and economic development in rural areas.

Preparatory work in drafting the Operational Programme for the next RDP is currently underway and includes an extensive needs analysis as well as both public and stakeholder consultation processes. Themes emerging from these processes and the research conducted by CEDRA, the Commission on Economic Development of Rural Areas, present similar areas of need within rural Ireland that could be supported through RDP interventions. These areas include the need to support and enhance national communication initiatives, to improve broadband and communications infrastructure with a particular focus on the needs of rural areas.

It is not possible, at this early stage of the process, to indicate what type of assistance the LEADER elements of the next RDP might be able to provide to support the provision of enhanced broadband in rural areas.

Control of Dogs

Questions (362)

Clare Daly

Question:

362. Deputy Clare Daly asked the Minister for the Environment, Community and Local Government if he will clarify whether section 9 of the Control of Dogs Act 1986 outlaws a person from tying up their dog outside a shop for a brief period; and what "keeps it under effectual control" means. [6422/14]

View answer

Written answers

Section 9(1) of the Control of Dogs Acts, 1986 and 1992 requires the owner or other person in charge of a dog to accompany it unless it is in the premises of the owner, or of such other person in charge of the dog, or the premises of any other person with the consent of that person. The interpretation of the law is a matter for the Courts under the Constitution.

Coastal Erosion

Questions (363)

Michael Healy-Rae

Question:

363. Deputy Michael Healy-Rae asked the Minister for the Environment, Community and Local Government the position regarding reclaiming land that is washed away by coastal erosion. [6445/14]

View answer

Written answers

The Foreshore Act 1933 defines foreshore as the bed and shore, below the line of high water of ordinary or medium tides, of the sea and of every tidal river and tidal estuary and of every channel, creek and bay of the sea or of any such river or estuary and the outer limit of the foreshore is to be determined in accordance with section 1A of the Foreshore Act.

The State Property Act 1954 vests ownership of the foreshore in the Minister for Public Expenditure and Reform on behalf of the State. There is a legal presumption that the State owns all of Ireland’s foreshore unless it can be shown that it has been the subject of a grant of title or has been adversely possessed over a period of time. The burden of proof of ownership rests on the claimant.

According to settled case law, when the sea gradually and imperceptibly encroaches upon the adjoining land through the process of natural erosion a new area of foreshore may be created. In such a case ownership of the land inundated by the sea may transfer from the owner of the adjoining lands to the State as the owner of the foreshore. Where, however, the movement of water is sudden or temporary, there may be no change in the ownership of the property in question.

Each case of coastal erosion varies according to local circumstances. Determining if any change of ownership of lands has occurred as a result of the erosion requires a detailed examination of each situation on its own merits. My Department can advise on specific cases if details are provided.

Water and Sewerage Schemes Funding

Questions (364)

Pearse Doherty

Question:

364. Deputy Pearse Doherty asked the Minister for the Environment, Community and Local Government if he will outline in detail what the figure of €635 million in the public capital programme for water and sewerage services programme is comprised of. [6511/14]

View answer

Written answers

The 2014 Revised Estimates Volume (REV) includes €635m in the Public Capital Programme Non-Voted Capital in respect of the Water and Sewerage Services. This reflects the capital programme of Irish Water, which is a commercial utility and a subsidiary of Bord Gáis Éireann, formed and registered under the Companies Act, for the establishment and initial operational costs of Irish Water (which will be capitalised), the roll-out of the national domestic metering programme and investment in water services infrastructure. Of this amount, €240m is proposed as an equity investment by the Minister for Finance, and the balance will be raised through borrowing subject to my consent and that of the Minister for Communications, Energy and Natural Resources, the Minister for Finance and the Minister for Public Expenditure and Reform.

Leader Programmes Funding

Questions (365)

Pat Deering

Question:

365. Deputy Pat Deering asked the Minister for the Environment, Community and Local Government when he will announce the next round of Leader funding for 2014-20; the total amount available; and if co-funding will be set at the corresponding 46% announced recently for other Pillar 2 moneys. [6770/14]

View answer

Written answers

Ireland has received an allocation from the EU of € 2.1 billion for the Rural Development Programme 2014-2020 (RDP). The EU Regulations provide for a 5% minimum allocation for LEADER. The Government has decided to increase this to 7% and I welcome this. Therefore €153 million in EU funding will be available for LEADER and this will be co-financed by Exchequer funding.

Ireland is required to submit a draft RDP to the European Commission for approval and it is intended that this will be submitted later this year by the Department of Agriculture, Food and the Marine which has overall responsibility for the programme.

The LEADER elements of the programme will primarily address Priority 6 of the Union priorities for rural development; that is, promoting social inclusion, poverty reduction and economic development in rural areas. In this context my Department held a stakeholders' consultation meeting on the LEADER elements of the programme on 30 January and an open public consultation meeting on 6 February in Tullamore. These consultations along with the report of the Commission on the Economic Development of Rural Areas (CEDRA), which I will publish shortly, will inform the draft LEADER programme to be submitted to the European Commission as part of the RDP.

The Exchequer co-financing element is currently subject to discussions between my Department, the Department of Agriculture, Food and the Marine, and the Department of Public Expenditure and Reform and following conclusion of these discussions, I will announce the overall value of the LEADER elements of the Programme.

Commercial Rates

Questions (366)

Barry Cowen

Question:

366. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if he will provide a county breakdown of collection rates for commercial rates in 2010, 2011, 2012 and 2013; and if he will make a statement on the matter. [6170/14]

View answer

Written answers

The levying and collection of rates are matters for each individual local authority.  The annual rate on valuation (ARV), which is applied to the valuation for each property, determined by the Valuation Office, to obtain the amount payable in rates, is decided by the elected members of each local authority in finalising its annual budget.

Rates income data are published by local authorities in their Annual Financial Statements. 2011 is the latest year for which audited local authority Annual Financial Statement data are available. The Local Government Audit Service is currently undertaking the audit of the 2012 Annual Financial Statements which should be completed shortly.

County Councils

% Collected 2010

% Collected 2011

Carlow

70%

74%

Cavan

79%

75%

Clare

80%

79%

Cork

83%

82%

Donegal

64%

57%

Fingal

84%

85%

Dun Laoghaire Rathdown

81%

76%

Galway

78%

72%

Kerry

83%

82%

Kildare

81%

77%

Kilkenny

87%

88%

Laois

81%

77%

Leitrim

78%

72%

Limerick

90%

87%

Longford

85%

81%

Louth

67%

59%

Mayo

83%

84%

Meath

87%

82%

Monaghan

77%

73%

North Tipperary

86%

81%

Offaly

93%

92%

Roscommon

77%

79%

Sligo

79%

68%

South Dublin

80%

74%

South Tipperary

88%

84%

Waterford

73%

67%

Westmeath

85%

80%

Wexford

76%

69%

Wicklow

77%

74%

City Councils

-

-

Cork

81%

79%

Dublin

82%

80%

Galway

64%

62%

Limerick

63%

59%

Waterford

86%

81%

Town & Boro Councils

-

-

Clonmel

81%

74%

Drogheda

72%

62%

Kilkenny

75%

72%

Sligo

68%

63%

Wexford

63%

60%

Arklow

53%

47%

Athlone

77%

78%

Athy

80%

77%

Ballina

80%

78%

Ballinasloe

76%

71%

Birr

74%

68%

Bray

71%

69%

Buncrana

38%

45%

Bundoran

64%

68%

Carlow

73%

72%

Carrick on Suir

70%

73%

Carrickmacross

79%

72%

Cashel

87%

91%

Castlebar

80%

72%

Castleblayney

46%

48%

Cavan

68%

65%

Clonakility

77%

69%

Clones

57%

61%

Cobh

71%

75%

Dundalk

61%

60%

Dungarvan

50%

51%

Ennis

70%

57%

Enniscorthy

72%

64%

Fermoy

87%

69%

Kells

85%

84%

Killarney

67%

63%

Kilrush

76%

76%

Kinsale

68%

58%

Letterkenny

54%

53%

Listowel

86%

84%

Longford

72%

67%

Macroom

81%

84%

Mallow

81%

86%

Midleton

81%

78%

Monaghan

76%

62%

Naas

79%

78%

Navan

76%

73%

Nenagh

84%

78%

New Ross

74%

58%

Skibbereen

78%

72%

Templemore

86%

79%

Thurles

73%

68%

Tipperary

90%

79%

Tralee

78%

74%

Trim

64%

66%

Tullamore

72%

67%

Westport

88%

86%

Wicklow

76%

62%

Youghal

79%

80%

Water Charges Introduction

Questions (367, 381)

Sandra McLellan

Question:

367. Deputy Sandra McLellan asked the Minister for the Environment, Community and Local Government the situation for persons on a private group water scheme in respect of water rates; and if he will make a statement on the matter. [6204/14]

View answer

Billy Kelleher

Question:

381. Deputy Billy Kelleher asked the Minister for the Environment, Community and Local Government if concessions will be made for residents who have their own wells as part of the new water rates to take into account the additional costs these home owners incur to pump water, including electricity costs and the cost of repairing and maintaining pumps, as against those households with a public water supply which do not have these expenses; if so, the way this disparity will be reflected; and if he will make a statement on the matter. [6427/14]

View answer

Written answers

I propose to take Questions Nos. 367 and 381 together.

The Programme for Government sets out a commitment for the introduction of water charges based on usage above a free allowance. The Government considers that charging based on usage is the fairest way to charge for water and it has, therefore, decided that water meters should be installed in households connected to public water supplies. Households served by group water supplies or by private wells will not be metered as part of the metering programme. Group water supplies already bill their domestic customers and households served by private wells will not be subject to water charges.

My Department will remain responsible for the overall policy and funding, where appropriate, of the non-public water sector . Over the past decade, substantial improvements have been made in the group water sector, reflected in improved infrastructure and management and leading to greater compliance with drinking water standards. This has been accomplished through a partnership approach between my Department, the local authorities and the group water sector itself, with the important involvement of the National Federation of Group Water Schemes. This co-operative approach will be maintained as the reform of water services provision is progressed.

Commercial Rates

Questions (368)

Barry Cowen

Question:

368. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if he has raised the issue of sporting organisations paying commercial rates to local authorities on their grounds with the Department of Public Expenditure and Reform; and if he will make a statement on the matter. [6211/14]

View answer

Written answers

Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes, in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. That Act determines properties that can, and cannot, be considered for rating purposes. The Commissioner for Valuation has sole responsibility for all valuation matters, including determination under the Act of relevant property for the purposes of rates.

The Valuation Act 2001 comes under the remit of my colleague, the Minister for Public Expenditure and Reform.

Building Regulations Application

Questions (369, 392)

Maureen O'Sullivan

Question:

369. Deputy Maureen O'Sullivan asked the Minister for the Environment, Community and Local Government in relation to the Building Control (Amendment) Regulations, SI 9 of 2014, if his attention has been drawn to the potential cost implication of these regulations for families wishing to build a home as a result of a self-builder having to hire a building contractor to project manage the building of a home from start to finish; and if he will make a statement on the matter. [6246/14]

View answer

Eoghan Murphy

Question:

392. Deputy Eoghan Murphy asked the Minister for the Environment, Community and Local Government his views regarding Statutory Instrument No. 9 in so far as it relates to self-builders; and if he will make any amendment to SI No. 9 before it comes into effect. [6551/14]

View answer

Written answers

I propose to take Questions Nos. 369 and 392 together.

I refer to the reply to Questions Nos. 544 and 554 of 28 January 2014 which comprehensively addressed the concerns raised by the Irish Association of Self-builders. The new Building Control Amendment Regulations which come into operation on 1 March 2014 will greatly strengthen the arrangements currently in place for the control of building activity by requiring greater accountability in relation to compliance with Building Regulations in the form of statutory certification of design and construction, lodgement of compliance documentation, mandatory inspections during construction and validation and registration of certificates. The new regulations are necessary following the widespread instances of failure by owners, designers and builders to comply with their statutory obligations under the Building Control Act 1990 to design and construct buildings in accordance with the building regulations. These obligations apply to all sectors of the housing market, including the self-build sector. An extensive public consultation process was undertaken in 2012 to inform the development of the regulations. The consultation document Strengthening the Building Control System - A Document to inform public consultation on Draft Building Control (Amendment) Regulations 2012 set out the context in which the reforms – as later signed into law last year, following some technical amendments, in S.I. No. 9 of 2014 - will operate and the regulatory impact of these for building owners and industry stakeholders. This document is still available on my Department's website.

Departmental Offices

Questions (370)

Tony McLoughlin

Question:

370. Deputy Tony McLoughlin asked the Minister for the Environment, Community and Local Government if he is considering any changes to local motor taxation offices based at local authority offices around the country similar to the decision to award the issuing of driving licences to local Road Safety Authority offices. [6302/14]

View answer

Written answers

In the context of advancing the programme for achieving improved efficiencies in local government as part of the broader public service reform agenda, the sector’s Programme Management Office, which is taking the lead role in developing shared service and broader efficiency initiatives in local government, will be completing an assessment of the scope for such an approach to the provision of motor tax services. Future initiatives in this area will be considered in light of the outcome of this assessment.

Housing Assistance Payments Implementation

Questions (371, 372)

Catherine Murphy

Question:

371. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government if, in advance of the establishment of the housing assistance payment scheme, his attention has been drawn to the facts that there has been a large reduction in the number of family homes available within the current rental system for which rent supplement is accepted, that as poverty increases, more and more families become dependent on State support to maintain a family home, and that, as the cost of available properties rises, an increasing number of families are becoming homeless; and if he will make a statement on the matter. [6352/14]

View answer

Catherine Murphy

Question:

372. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government the number of applications to join the housing assistance payment scheme in 2013; the progress towards completion of same; and if he will make a statement on the matter. [6353/14]

View answer

Written answers

I propose to take Questions Nos. 371 and 372 together.

On 18 July 2013, the Government approved the introduction of the Housing Assistance Payment (HAP). Approval was also given for the provision of funding to the local authorities to cover the cost of accommodating HAP recipients, and it was agreed that the Department of Social Protection (DSP) would provide for the implementation of the mandatory direct deduction of rental contributions from the welfare payments of HAP recipients and local authority tenants. My Department and DSP continue to work closely on the legal, policy and operational issues involved in developing and introducing HAP. On 17 December 2013, the General Scheme of a Housing Bill providing for HAP was approved by Government and the Bill is in preparation, as a priority for enactment to facilitate the implementation of HAP in 2014.

My Department is working closely with all the key stakeholders in overseeing plans for the implementation of HAP, but more specifically at this stage in relation to initiating a pilot project early in 2014 and phased roll out of the scheme later in 2014, subject to the enactment of the relevant legislation. Limerick City and County Councils have been identified as the lead authority to drive implementation in the local government sector including the delivery of the HAP pilot in Quarter 1 2014.

It is intended that the pilot and implementation phases will prioritise, as much as possible, the transfer of long-term unemployed rent supplement recipients, or those who are homeless or in danger of homelessness, to HAP. This is a reasonable approach to implementation, which will allow any issues that arise to be dealt with in a graduated way and give local authorities sufficient time to scale up the operation of HAP within their housing sections.

With a view to analysing the specific dynamics of homelessness, in February 2013 I published the Government's Homelessness Policy Statement which included a set of indicators which will be used to demonstrate these dynamics. These indicators will give a clearer picture of homelessness in Ireland and, in quantifying its on-going extent, will support the bringing forward of realistic and practical solutions. The Pathway Accommodation & Support System (PASS), which is now operational nationwide will assist housing authorities to report on these indicators and 2014 will be the first year for which PASS will produce composite national data on homelessness.

In relation to the availability of accommodation in the private rented sector , my Department understands that some local authorities in the Greater Dublin region are experiencing difficulties in sourcing accommodation for households transferring over from rent supplement to the Rental Accommodation Scheme . This is only to be expected as local authorities have to compete with others in the private market. That said , my Department is not aware of difficulties in securing suitable accommodation elsewhere under the scheme. While there is, therefore, some evidence emerging of a lack of supply in the private rented sector in certain areas, the national picture is mixed. The most recent rent index from the ESRI (for the Private Residential Tenancies Board (PRTB) ) showed that rents in the Dublin region had increased by 2.5% over the previous quarter while rents in the 'outside Dublin' category showed a 1.4% increase. These trends in rents suggest that there is a supply issue presenting, notably in the cities. Coupled with the ESRI figures, there is some evidence of a growing pressure on rents in the lower segment of the market with a Threshold study indicating that 50% of people in receipt of rent supplement are making 'top-up' payments to landlords. In the context of the implementation of HAP and housing policy decisions generally my Department will continue to monitor trends in the housing market and the potential impacts on housing supply.

Irish Water Funding

Questions (373, 374)

Stephen Donnelly

Question:

373. Deputy Stephen S. Donnelly asked the Minister for the Environment, Community and Local Government the projected costs for the establishment of Irish Water; if he will use the borrowing provisions of the Water Services Act 2013 to repay the full establishment costs of Irish Water into the local government fund; and if he will make a statement on the matter. [6364/14]

View answer

Stephen Donnelly

Question:

374. Deputy Stephen S. Donnelly asked the Minister for the Environment, Community and Local Government if the annual costs of water provision, in addition to the establishment costs of Irish Water, are to be paid out of the local government fund in 2014; if this represents a double payment for water services by local authorities and local communities; and if he will make a statement on the matter. [6365/14]

View answer

Written answers

I propose to take Question Nos 373 and 374 together.

The establishment of Irish Water in 2013 was an integral component of the Government’s water sector reform strategy and involves major organisational change, an entirely new funding structure governed by economic regulation, the introduction of domestic water charges based on usage and the roll-out of a national domestic metering programme. Bord Gáis Éireann (BGE) had responsibility for most of the deliverables under the Government water sector reform implementation strategy. BGE developed a detailed programme initiation document within the framework of this strategy, which outlined all of the tasks required to establish a fully functioning integrated public water utility and provided this to my Department in August 2012. They also provided an associated budget to my Department which outlined the costs involved in each area of activity, totalling €150m, plus €30m contingency, and reflecting both the use of BGE and external resources. The budget reflected the range of tasks to be undertaken from financial, governance, regulatory business capability, systems, brand management and customer engagement perspectives. In addition, Irish Water has progressed the domestic water metering programme, the full cost of which is €539m excluding VAT.

All costs incurred by Irish Water in 2013 were financed by a loan from the National Pensions Reserve Fund (NPRF), with the exception of a grant of €0.57m for a pilot metering study funded by the Department. No other Exchequer funds or voted Department expenditure was provided to Irish Water in 2013.

The establishment costs will be included in the overall funding model for Irish Water; accordingly, they will also be examined by the Commission for Energy Regulation as an integral element of the independent economic regulation of Irish Water. I also expect that establishment costs and metering costs will be included in the regulatory asset base for Irish Water.

In 2014, Irish Water, which now has statutory responsibility for water services, will receive €240m in equity from the Minister for Finance and almost €490m from the Local Government Fund but no other funding from the Department’s Vote. It is anticipated that Irish Water will finance other costs from borrowing and this will be the subject of appropriate Ministerial consents in due course. The subvention to Irish Water from the Local Government Fund in 2014 will fund water related expenditures incurred heretofore by local authorities; operational costs of providing water services, estimated at just under €723 million, have been removed from the local government sector in 2014. These expenditures were previously met by local authorities from their own resources and general purpose grants from the Fund.

The level of State subvention to Irish Water from the Fund in 2014 reflects the fact that the costs of operating water services now have to be met by Irish Water and that there will not be revenue from domestic water charges in 2014, as first bills will not issue until 2015. Therefore there is no question of double payment by either local authorities or local communities for water services in 2014.

Local Authority Funding

Questions (375)

Stephen Donnelly

Question:

375. Deputy Stephen S. Donnelly asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 108 of 6 November 2013, if it is his intention to reduce the proposed retention of local property tax receipts to below 80% to support those local authorities with weaker funding bases; and if he will make a statement on the matter. [6366/14]

View answer

Written answers

The local government funding model has changed considerably in 2014. For example, the establishment of Irish Water and its financial relationship with the local government sector will have a considerable impact on local authority financing. In addition, under the Finance (Local Property Tax) Act 2012 , the Minister for Finance, from 2014 onwards, is to pay into the Local Government Fund an amount equivalent to the Local Property Tax paid into the Central Fund during that year; this will contribute to a range of financial supports being provided to local authorities, including General Purpose Grants and funding, on the basis of Service Level Agreements, for water services which local authorities will be providing on behalf of Irish Water.

The Government has indicated an intention to move to 80% retention of all Local Property Tax receipts within the local authority area where the Tax is raised. Given the significant changes to local government financing already taking place in 2014, as already outlined, it has been necessary to defer defining a certain proportion of the proceeds of the Local Property Tax to be retained in each local authority until 2015. This approach allows maximum flexibility in allocating Local Property Tax in 2014 in the form of General Purpose Grants, with a priority to support those local authorities with weaker funding bases.

The budgetary process for 2015, which will be completed in the second half of this year, will assess and manage the implications of local retention of Local Property Tax, as required. The portion of Local Property Tax that is not retained at local level will be available for re-distribution, including as support to local authorities with weaker funding bases, if necessary.

Property Tax Administration

Questions (376)

Joe Higgins

Question:

376. Deputy Joe Higgins asked the Minister for the Environment, Community and Local Government the way the local property tax will be set by local authorities; if it will be a function of the manager to propose a rate in the annual budget; and what power councillors will have. [6369/14]

View answer

Written answers

Under section 20 of the Finance (Local Property Tax) Act 2012, a local authority may, as a reserved function to be discharged by the elected members , resolve to vary the rate of the Local Property Tax within its functional area by a maximum of +/-15%. This power will be available to local authorities effective from 2015, as the relevant sections of the Act will come into operation on 1 July 2014.

Section 20 of the Act requires that, in varying the rate, a local authority must take account of its financial position, its income and expenditure, and of the financial effect of the varied rate on the economy of its functional area, including on those persons who will be liable to pay the Local Property Tax. Section 20 also provides that the Minister for the Environment, Community and Local Government may make regulations, including in respect of public consultation requirements prior to the variation of the rate of the Tax. I will give consideration to the making of such regulations in advance of the coming into operation of section 20 of the 2012 Act.

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