Dáil Éireann Debate, Tuesday - 28 January 2014
489. Deputy Brendan Griffin asked the Minister for the Environment, Community and Local Government the reason local property tax revenue was used in the establishment of Irish Water; and if he will make a statement on the matter. [4268/14]
Amharc ar fhreagra494. Deputy Michael McCarthy asked the Minister for the Environment, Community and Local Government the total amount retained from property tax receipts for the express purpose of funding the establishment and operation of Irish Water; and if he will make a statement on the matter. [3510/14]
Amharc ar fhreagraI propose to take Question Nos. 489 and 494 together.
The local government funding model is changing considerably in 2014. Under the Finance (Local Property Tax) Act 2012, commencing this year, the Minister for Finance will pay into the Local Government Fund an amount equivalent to the Local Property Tax paid into the Central Fund during that year; this revenue will be allocated to local authorities from the Fund, as General Purpose Grants. In addition, the establishment of Irish Water and its financial relationship with the local government sector has a considerable impact on local authority financing.
The Revised Estimates Volume for Public Services 2014 estimates total income to the Local Government Fund of €1.710 billion in 2014, including estimated Local Property Tax income of €550m. An amount of €490m is provided for Irish Water from the Fund in 2014. I expect the final outturn figure for 2014 will be slightly less than this amount at €486.5m. This amount will fund water related expenditures incurred heretofore by local authorities; these expenditures were previously met by local authorities from their own resources and general purpose grants.
