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Local Authority Finances

Dáil Éireann Debate, Thursday - 27 October 2016

Thursday, 27 October 2016

Ceisteanna (87, 88)

Thomas Pringle

Ceist:

87. Deputy Thomas Pringle asked the Minister for Housing, Planning, Community and Local Government if the additional funding of €1 million which his Department has sanctioned to support Sligo County Council, which he referred to in Dáil Éireann on 19 October 2016, is only being made available to Sligo; if his Department will consider providing similar additional funding to Donegal County Council, which, like Sligo, has submitted a financial plan to his Department; and if he will make a statement on the matter. [32353/16]

Amharc ar fhreagra

Thomas Pringle

Ceist:

88. Deputy Thomas Pringle asked the Minister for Housing, Planning, Community and Local Government further to his reply to Parliamentary Question No. 244 of 4 October 2016 and his statement in Dáil Éireann of 19 October 2016 (details supplied), if he will clarify matters and confirm his Department will be providing additional funding to Sligo County Council to pay for the additional six library staff; if he will consider providing similar additional funding to Donegal County Council for staff; and if he will make a statement on the matter. [32354/16]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 87 and 88 together.

Sligo County Council approached my Department in 2012 to highlight its deteriorating financial position. While it is a matter for each local authority to determine its own spending priorities in light of available resources and as part of the annual budgetary process, owing to the particular severity of Sligo's financial situation my Department entered into regular consultations with the Council. This process resulted in Sligo County Council identifying areas where savings could be made and the putting in place of a formal long-term Financial Plan in December 2015.

In support of the work undertaken by Sligo, my Department committed to providing financial support to the Council of €1 million per annum on condition that annual surplus targets were achieved.

Sligo's Financial Plan is subject to periodic reviews by my Department. Review meetings have taken place between my Department and the Council during 2016 and further engagement is envisaged. On 3 October 2016, my Department agreed adjustments to the implementation schedule in respect of the Financial Plan. A reduction in the 2016 savings target has been agreed with related adjustments to be made in respect of later years. These changes, which relate to taxation, enterprise support and the timing of retirements and career breaks, have enabled the local authority to comply with the financial plan. Additional funding of €1 million on an annual basis is made available to Sligo where it demonstrates compliance with the plan in that year. This additional funding provides Sligo with a greater degree of flexibility and enables it to consider a wider range of resourcing requirements. However, in accordance with section 159 of the Local Government Act 2001, it is a matter solely for Sligo County Council to prioritise and allocate its resources, including any additional funding, to address its requirements, including in relation to the library service. My Department has not been prescriptive in this regard.

In December 2010, following engagement with Donegal County Council as regards its financial planning, my Department sanctioned a loan of €48.6 million to be used by the Council in respect of financial restructuring, subject to the carrying out of periodic financial reviews by my Department. There are no resources available that could be used to provide additional funding to Donegal County Council.

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