asked the Minister for Local Government and Public Health if he will state what arrangements he intends to make to relieve county councils of the debts incurred by them as a result of the turf cutting activities undertaken by them during the emergency.
Ceisteanna—Questions. Oral Answers. - County Council Debts.
Under the financial arrangements governing turf production by county councils, the expenditure incurred is self-liquidating. The total expenditure on turf by county councils up to 31st December last was approximately £5,655,000 and the receipts amounted to approximately £5,000,000. The liquidation of the balance due to county councils is being constantly reviewed, but the full expenditure cannot, of course, be met until the stocks on hand have been finally disposed of. The financial arrangements provide for the recoupment to county councils of the full ascertained cost of production of turf sold to Fuel Importers, Ltd., and to Government Departments, while the county councils meet the cost of turf appropriated for their own use, including the needs of county institutions. Losses on sales by councils to purchasers other than those referred to are under consideration. As long as turf production is to be continued there must necessarily be a floating balance of expenditure to be met.
Is the Parliamentary Secretary aware that there is a regular standing overdraft to the extent of £600,000 by county councils and that that has been the case for some years? Will he say how long county councils are going to be asked to bear the burden of that overdraft on which they have to pay 4 per cent.?
In reply to the Deputy, I would suggest that these overdrafts are in the nature of working capital and their existence is due to the fact that Fuel Importers pay the county councils an interim price pending the ascertainment of the official cost of production. In some cases, and in respect of some counties, there are considerable delays in ascertaining the official cost of production, but there is no reason to suppose that county councils will be at a loss.
In the meantime, do I understand that county councils are subsidising Fuel Importers, Ltd., by the amount of interest they pay on this £600,000, another hidden subsidy for Fuel Importers?