Dáil Éireann Debate, Tuesday - 23 June 2020
881. Deputy Pádraig O'Sullivan asked the Minister for Housing, Planning and Local Government the way in which he plans to help local authorities meet the massive shortfalls and deficits in their budgets; and if he will make a statement on the matter. [11906/20]
Amharc ar fhreagra883. Deputy Steven Matthews asked the Minister for Housing, Planning and Local Government the position regarding the finances lost and extra costs incurred by local authorities directly due to Covid-19; and if these losses and expenses will be replaced by centralised funding. [12071/20]
Amharc ar fhreagraI propose to take Questions Nos. 881 and 883 together.
Since the outbreak of the Covid-19 pandemic, my Department has taken a number of measures to assist local authorities with the financial difficulties they are experiencing.
At the outset and to minimise cash flow challenges, my Department arranged for the early payment of Local Property Tax (LPT) to all local authorities. As a short term measure, my Department made €136m available to local authorities as cash flow support in early April, in order to ensure that vital services that local authorities deliver can be maintained. This support was comprised of the early payment of the LPT allocation ordinarily paid from the Local Government Fund in May and July.
On 2 May 2020, the Government announced that a waiver of commercial rates will apply to all businesses that have been forced to close due to public health requirements, from 27 March 2020, for a three-month period. The costs involved will be met by the Exchequer. My Department is currently preparing further guidance for local authorities on this initiative.
It is also recognised that local authorities have incurred additional costs in relation to their lead role in the Covid-19 response. My Department has requested local authorities to separately identify and capture these costs, so as to accurately support financial analysis of the impact of Covid-19 on the local government sector. In order to support the sector generally, my Department will continue to keep local authority income, expenditure and cash flow generally under review and will work with all local authorities, both collectively and individually, on issues arising.
