Dáil Éireann Debate, Tuesday - 22 October 2019
642. Deputy Shane Cassells asked the Minister for Housing, Planning and Local Government the funding which will be provided to local authorities in 2020 in lieu of the loss of commercial rates from Irish Water properties; and the funding provided in 2019. [43286/19]
Amharc ar fhreagraThe Government is providing €156 million to support local authorities through the exchequer contribution to the Local Government Fund (LGF) in 2020.
Support for local government in 2020 has been realigned, largely as a result of the valuation of Irish Water as a global utility liable for commercial rates. From 2014 to 2019 compensation was paid to local authorities in lieu of commercial rates from Irish Water. Irish water is liable for commercial rates from 2020 and the need for compensation in lieu of commercial rates ceases. The apportionment of the valuation of Irish Water among local authorities from 2020 will be based on population, similar to other global utility companies with national networks.
It is expected that the local authority sector will collect a broadly similar amount through commercial rates as was received in previous years through exchequer funded water rates compensation. I expect that in some cases, individual local authorities will receive more in commercial rates than they received in compensation, and that some local authorities will receive less. My Department is actively monitoring the financial impact of this transition on local authorities, in the context of their overall financial position.
