Local Authority Funding

Dáil Éireann Debate, Thursday - 27 March 2014

Thursday, 27 March 2014

Questions (145, 146)

Clare Daly

Question:

145. Deputy Clare Daly asked the Minister for the Environment, Community and Local Government if his attention has been drawn to the fact that in a letter to Sligo County Council dated 18 December 2013 his Department indicated that an amount of €1 million had been set aside in the local government fund for Sligo County Council and that the funding would be provided to the council in 2014 on the basis of an agreed long-term financial plan between the council and his Department which would detail the council's proposals for dealing with the accumulated deficit and on condition of ongoing review of the implementation of the agreed plan by way of quarterly review meetings between the council and his Department; the other councils, if any, that have received additional funding in 2014 conditional on submitting long-term financial plans and conditional on quarterly review meetings with his Department; and if he will make a statement on the matter. [14679/14]

Clare Daly

Question:

146. Deputy Clare Daly asked the Minister for the Environment, Community and Local Government if his attention has been drawn to the fact that in a letter to Sligo County Council dated 18 December 2013 his Department indicated that an amount of €1 million had been set aside in the local government fund for Sligo County Council and that the funding would be provided to the council in 2014 conditional on the council submitting a long-term draft financial plan for dealing with the council’s accumulated deficit that was agreeable to his Department; and further conditional on the draft plan being agreed by the end of February 2014 with ongoing review of the implementation of the agreed plan by way of quarterly review meetings between the council and his Department; if the draft plan was submitted by the council as requested by 24 January 2014; if the draft plan was agreed by his Department; and if he will make a statement on the matter. [14680/14]

Written answers

Minister for the Environment, Community and Local Government

I propose to take Questions Nos. 145 and 146 together.

Local authorities’ cost and income bases vary significantly from one another. General purpose grants are structured to bring about equalisation over time; that is a position of balance where the financial needs of local authorities are met by their resources, and they are able to provide an appropriate level of service to their customers. In determining these grants, a number of factors are taken into account including the overall funding available for this purpose, the estimated cost to each authority of providing a reasonable level of services to their customers, the income each authority generates from local sources and the necessity to provide each authority with a baseline allocation that supports its financial stability.

€1m of the general purpose grant allocation to Sligo County Council for 2014 is conditional on a realistic and achievable plan which charts a path to long-term financial sustainability being agreed between my Department and the Council in the first quarter of 2014. A similar approach was not adopted in relation to any other local authority for 2014, reflecting the particular challenge to be addressed in the case of the finances of the Sligo local authorities.

While it is a matter for individual local authorities to manage their own day-to-day finances in a prudent and sustainable manner, my Department is in regular and ongoing consultation with Sligo County Council in relation to their financial position and the finalisation of a long term financial plan, a process which is ongoing.