Dáil Éireann Debate, Tuesday - 13 February 2018
659. Deputy Catherine Murphy asked the Minister for Housing, Planning and Local Government the funding being allocated to cover the costs of new posts when additional posts are sanctioned to local authorities; if changes are made to local authority baselines to build in future costs of approved posts; if not, the reason; and if he will make a statement on the matter. [6686/18]
View answerUnder section 159 of the Local Government Act 2001, it is the Chief Executive of each local authority who is responsible for the staffing and organisational arrangements necessary for carrying out the functions of the Council.
Should the need arise for additional staff, a Chief Executive must ensure that there are adequate resources available to his or her local authority prior to sanction being granted from my Department. For certain projects, including Transport Infrastructure Ireland projects, housing capital projects, local enterprise initiatives and landfill remediation work, central funding can be availed of to fund the costs of additional staff.
The funding system for local authorities is a complex one, as authorities derive their income from a variety of sources including commercial rates, charges for goods and services, Local Property Tax (LPT) as well as funding from Government Departments and other bodies. The purpose for which discretionary income is used is a matter for the elected members of the local authority. Elected members have direct responsibility in law for all reserved functions of the authority, which includes adopting the annual budget. Accordingly, 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.
Local retention of LPT began in 2015 and is now established as an important source of funding for the local government sector, thereby reducing reliance on central funding. In accordance with decisions taken by Government regarding the distribution of LPT, every local authority has a minimum level of funding available to it, known as the baseline. There are variances across the country in terms of LPT levels but it is important that all local authorities receive at least this baseline level of funding to ensure they can deliver services. For 2017 onwards, an upward adjustment was made to the LPT baseline of each local authority, to include an additional amount equivalent to the Pension Related Deduction (PRD) income retained by local authorities in 2014. The inclusion of PRD in increased LPT funding baselines helps protect local authority income in the future. It means that, from 2017 onwards, local authorities do not retain PRD locally, thus reversing the previous approach. This was designed to negate the effects of declining PRD income being retained by local authorities from 2016 onwards as a consequence of the implementation of National pay agreements.
Commercial rates account for over a third of local authority income. The Government has decided to proceed with legislation to improve the administration of commercial rates, which will enable local authorities to achieve higher rates of collection and lower levels of arrears and debt, leading to increases in locally generated revenue.
My Department works with all local authorities to ensure the local government sector can meet existing and emerging challenges. Matters relating to LPT allocation methods and baselines for future years will be reviewed as necessary and appropriate. All such funding issues have to be considered within the parameters of the national fiscal and budgetary situation and the competing priorities presenting themselves at wider Governmental level.
