Dáil Éireann Debate, Tuesday - 22 September 2020
355. Deputy Cian O'Callaghan asked the Minister for Housing, Local Government and Heritage the long term supports that will be provided to local authorities with Covid-19 related budget deficits; and if he will make a statement on the matter. [25343/20]
View answerMy Department continues to make every effort to assist local authorities with the financial challenges they are experiencing since the outbreak of the Covid-19 pandemic, including cash flow support by bringing forward payments where possible, so that the vital services that local authorities deliver can be maintained. As cash flow support, in early April an advance of €136m of LPT allocations was made to authorities, and the entirety of LPT allocations for 2020, some €517m, was paid out by early September rather than the normal payment spread that continues later into the year. In addition my Department arranged for the payment of 50% of each local authority’s individual Payroll and PSPR allocation, amounting to almost €55.m, in mid-June.
To support both the local government sector and the business community, €600m has been allocated by Government, as part of the July Stimulus package, to fund the cost of a waiver of commercial rates for six months to 27 September 2020 for eligible businesses badly impacted by the COVID-19 pandemic. This will take the form of a credit in lieu of rates.
It is also recognised that additional costs are being incurred by local authorities in relation to Covid-19. Local authorities have been advised to capture all related costs in their financial systems to aid financial analysis of the impact of Covid-19 on the local government sector. My Department also continues to keep local authority income, expenditure and cash flow under review and will continue to work with all local authorities, both collectively and individually, on issues arising.
