Dáil Éireann Debate, Tuesday - 7 July 2020
268. Deputy Frankie Feighan asked the Minister for Housing, Planning and Local Government when it is planned to reimburse councils for the loss of rates since March 2020; and if he will make a statement on the matter. [13760/20]
Amharc ar fhreagra269. Deputy Michael Healy-Rae asked the Minister for Housing, Planning and Local Government if an adequate compensation package will be put in place for local authorities in order that they can continue the day to day running of counties (details supplied); and if he will make a statement on the matter. [13796/20]
Amharc ar fhreagra272. Deputy John McGuinness asked the Minister for Housing, Planning and Local Government the position on the collection of commercial rates arising from the Covid-19 lockdown; and if a rate holiday will be granted for 2020 to the end of 2021. [13853/20]
Amharc ar fhreagra328. Deputy Richard Boyd Barrett asked the Minister for Housing, Planning and Local Government if he will ensure any shortfall in funding experienced by local authorities due to businesses being unable to pay their rates due to Covid-19 will be filled by his Department in order that this shortfall does not cause a reduction in local services. [14554/20]
Amharc ar fhreagraI propose to take Questions Nos. 268, 269, 272 and 328 together.
I intend to continue supporting measures taken by my Department to assist local authorities with the financial difficulties they are experiencing since the outbreak of the Covid-19 pandemic.
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, €136m was made 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. Further to these measures, my Department recently arranged for the early payment of 50% of each local authority’s individual Payroll and PSPR allocation, amounting to €54.8m. This interim payment would ordinarily be paid later in July.
My Department has previously engaged with the Departments of the Taoiseach, Public Expenditure and Reform, and the former Departments of Business, Enterprise and Innovation, Employment Affairs and Social Protection, and Transport, Tourism and Sport in relation to commercial rates and local authority funding issues, as well as the role that local authorities may be in a position to play in supporting economic recovery.
On 2 May 2020, a waiver of commercial rates was announced 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 to be met by the Exchequer. The administration by local authorities of this measure will be by way of a credit in lieu of commercial rates. My Department is currently preparing further guidance on the scope and application of the waiver for local authorities.
The approved Programme for Government – Our Shared Future, commits to setting out how commercial rates will be treated for the remainder of 2020, as a priority action for the new Government.
It is recognised that some additional costs are being incurred by local authorities in relation to Covid-19. Local authorities have been advised to capture all related costs in their financial systems to aid future financial analysis of the impact of Covid-19 on the local government sector. In order to support the sector generally, I will ensure my Department continues to keep local authority income, expenditure and cash flow generally under review and will continue to work with all local authorities, both collectively and individually, on issues arising.
