Jonathan O'Brien
Question:612. Deputy Jonathan O'Brien asked the Minister for Housing, Planning and Local Government if he will address a matter (details supplied) regarding a discrepancy in funding trends. [49083/18]
View answerTuesday, 27 November 2018
Questions (612)
Written answers
Local authorities’ costs and income bases vary significantly from one another, based on their size, demography, topography and rural/urban mix. Accordingly, the funding system that applies to local authorities is a complex one, as authorities derive their income from a variety of sources including commercial rates, charges for goods and services and funding from Central Government.
Changes in funding over the period reflect the implementation of various Government policies. For example, the Local Government Fund primarily paid General Purpose Grants to local authorities up to 2014; in 2015 these were replaced by Local Property Tax payments. Also, as a result of the introduction of Irish Water, from 2014 onwards, local authorities no longer received funding directly from the Local Government Fund in respect of the provision of water services.
Funding to local authorities from my Department’s Vote includes programme funding primarily in relation to housing and water (up to 2014). It is important to note, however, that the funding reflects how the Department was configured in the years concerned. For instance, in 2016, the environment functions were transferred to the Department of Communications, Climate Action and Environment (DCCAE) and certain rural development functions were transferred to the Department of Arts, Heritage, Regional Rural and Gaeltacht Affairs. In addition, in 2017, community development functions transferred to the Department of Rural and Community Development. Funding to local authorities in respect of these policy areas is no longer provided through my Department but is reflected in the Votes of those Departments and, in the case of DCCAE, the Environment Fund. Also, fluctuations in funding from one year to the next can reflect the funding of significant capital projects which, by their nature, are time limited.
In overall terms, funding to local authorities from central government (not solely from my Department) totalled €2.66 billion in 2017, an increase of 19.8% on the €2.22 billion in 2016, and an increase of 33.6% on the 2015 figure of €1.99 billion.
A breakdown of funding to each local authority from my Department as it was configured in each year from 2011 to 31 October 2018, broken down between funding from the Departmental Vote, the Local Government Fund and, from 2011 to October 2016, the Environment Fund, before it transferred to the responsibility of the Minister for Communications, Climate Action and the Environment is available at the following link: