Dáil Éireann Debate, Thursday - 11 November 2021
47. Deputy Alan Dillon asked the Minister for Housing, Local Government and Heritage if his Department plans to reimburse local authorities for the significant income they have lost out on due to Covid-19 in particular reduced incomes from parking charges or decreased revenues from commercial rates; and if he will make a statement on the matter. [55195/21]
View answerMy Department continues to engage with representatives of the local government sector and the Department of Public Expenditure and Reform on the financial challenges facing local authorities as a direct consequence of the pandemic, both in terms of additional costs incurred as part of the local government response and declines in local authority income streams, including the loss of income from commercial rates and parking charges.
€131m was recouped to local authorities in 2020 to offset the loss of income and additional expenditure incurred by local authorities due to the pandemic. The Government recouped €729m to local authorities to fund the cost of a rates waiver in 2020. This meant that for eligible businesses their commercial rates were funded by Government for nine months of 2020. €480m was allocated by Government to fund the cost of the nine month waiver this year. These are unprecedented measures, which offer support to businesses and financial certainty to local authorities.
The Government, in Budget 2022, announced a more targeted commercial rates waiver for Q4 2021 to cover the hospitality and tourism sectors and €62.3m has been allocated by Government for this purpose. The waiver will have a positive impact for businesses, communities and for jobs. It will also ensure that local authorities receive funding in respect of commercial rates, which is critical in order for the local government sector to deliver for the communities and citizens they serve.
Local authorities continue 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 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.
