Dáil Éireann Debate, Wednesday - 4 March 2015
24. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government the support and funding being made available by the Government to help Sligo County Council resolve its financial difficulties; the conditions his Department is imposing on the county council in return for financial support; and if he will make a statement on the matter. [9014/15]
Amharc ar fhreagraLocal authorities have three main sources of funding - grants from Central Government, commercial rates and other locally-raised charges. In recognition of the fact that certain local authorities have fewer opportunities to raise income locally, Central Government has provided much higher levels of funding to support the efforts of these authorities to provide an adequate level of public services. In terms of support to Sligo County Council, in 2014 approximately 54% of Sligo’s budgeted income was expected to be provided by Central Government – almost double the national average of 28%.
The Government’s decision to redistribute 20% of Local Property Tax collected nationally from 2015 to support authorities who have lower-valued property bases will result in Sligo receiving up to €5.6 million from this equalisation fund – more than half of its overall LPT allocation.
Sligo County Council has been incurring revenue deficits for the last number of years to the effect that their cumulative deficit now stands at over €26 million. Long term debt is in excess of €120m. I held a very constructive meeting with a representative group of Members from Sligo County Council on 3 February 2015 to discuss their financial situation. While it is clearly a matter for each local authority, including Sligo County Council, to determine its own spending priorities in the context of the annual budgetary process, having regard to both locally identified needs and available resources, I advised them that their financial position was a matter of significant concern and agreed to continue to work with them to move Sligo County Council onto a more sustainable financial footing.
I have not been prescriptive in respect of the steps that Sligo County Council should take but I have asked that an agreed five-year financial and debt management plan be put in place, underpinned by an income and expenditure strategy.
I have set aside an allocation of €1 million in additional funding for 2015 for Sligo County Council to assist it to take the steps necessary to move to a more sustainable financial position; they received an additional €250,000 in 2014 for these purposes. The payment of this additional funding for 2015 remains fully conditional on a realistic and achievable financial plan, which charts a path to long term financial sustainability, being agreed between my Department and the Council; this process is on-going.
