Local Authority Funding

Dáil Éireann Debate, Wednesday - 9 September 2020

Wednesday, 9 September 2020

Ceisteanna (133)

Eoin Ó Broin

Ceist:

133. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the projected shortfall in rates and non-rates funding for local authorities by council for 2019; the estimated additional Covid-19-related funding required by each by local authority for 2019; and his plans to address the non-rates shortfall and Covid-19-related additional costs for 2020. [22827/20]

Freagraí scríofa

Minister for Housing, Local Government and Heritage

In 2019, €1.4bn was collected in rates from all 31 local authorities, an average collection rate of 86.6%. This collection rate is in line with the annual trends across the local government sector and does not reflect a funding shortfall. Similarly, as per unaudited 2019 figures, 30 of the 31 local authorities had a budget surplus in 2019, a continuing trend from 2018 and a marked improvement from previous years. The figures per local authority are set out below; while these figures are, as yet, unaudited, no significant change is expected when the auditied figures for the entire local government sector are available.

	Annual Surplus/(Deficit) 2019	Rates Collected 2019	% Collected
Carlow County Council	€ 56,889	€ 11,604,480	86
Cavan County Council	€ 88	€ 12,389,423	79
Clare County Council	€ 535,724	€ 38,709,116	87
Cork City Council	€ 52,798	€ 63,893,897	83
Cork County Council	€ 63,542	€ 123,284,692	93
Donegal County Council	€ 652,747	€ 27,746,968	76
Dublin City Council	€ 2,143,110	€ 320,093,620	94
DLR County Council	€ (1,052,478)	€ 79,864,068	94
Fingal County Council	€ 923	€ 126,852,927	98
Galway City Council	€ 222,758	€ 34,079,386	83
Galway County Council	€ 16,773	€ 23,236,302	87
Kerry County Council	€ 83,784	€ 35,784,704	86
Kildare County Council	€ 170,424	€ 51,942,802	83
Kilkenny County Council	€ 10,193	€ 17,424,136	94
Laois County Council	€ 73,343	€ 11,592,946	80
Leitrim County Council	€ 1,524	€ 4,781,009	83
Limerick City & County Council	€ 10,303	€ 53,627,807	88
Longford County Council	€ 13,302	€ 7,367,602	88
Louth County Council	€ 404,831	€ 29,884,642	83
Mayo County Council	€ 468,191	€ 19,856,075	88
Meath County Council	€ 267,818	€ 34,285,905	93
Monaghan County Council	€ 76,867	€ 10,458,447	86
Offaly County Council	€ 632,096	€ 14,488,091	88
Roscommon County Council	€ 11,907	€ 10,311,746	89
Sligo County Council	€ 1,017,089	€ 10,461,576	82
Sth Dublin County Council	€ 4,073	€ 117,950,053	88
Tipperary County Council	€ 6,590	€ 27,711,053	83
Waterford City & County Council	€ 891,847	€ 28,437,225	82
Westmeath County Council	€ 31,172	€ 13,962,140	85
Wexford County Council	€ 1,642,312	€ 32,395,976	90
Wicklow County Council	€ 305,274	€ 24,194,959	87

As the Covid-19 pandemic had not yet had any impact in Ireland, there was no additional Covid-19 related funding required by any local authority for 2019.

In relation to my plans to address the potential shortfall for 2020; in order to support the local government sector, my Department is continuing to keep local authority income, expenditure and cash flow generally under review and will continue to work with all local authorities on both collective and individual issues arising.

My Department is engaging with the Department of Public Expenditure and Reform regarding the level of additional financial support that will be needed by local authorities during and after the COVID-19 Crisis.

Indeed, to that end, as a short term measure in recognition of the immediate need, 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 could be maintained. This support was comprised of the early payment of the Local Property Tax allocation ordinarily paid from the Local Government Fund in May and July. Furthermore, as of September 2020, the full Local Property Tax allocation has been advanced to local authorities. This has been completed on an accelerated schedule to support local authorities.

In May, the Government announced an initial three-month waiver of rates for businesses forced to close business due to COVID-19. In order to enhance the supports available for enterprise, and in recognition of the fact that not only have many ratepayers been forced to close business due to the public health requirements, but many others that remained open have suffered significant reductions in turnover, this waiver was subsequently extended to six months to the end of September and the categories of enterprise that are eligible has been expanded. €600m has been allocated by Government to fund the cost of this waiver, which will take the form of a credit in lieu of rates.

As stated previously, in relation to the potential non-rates funding shortfall and Covid-19 related additional costs, my Department is engaging with the Department of Public Expenditure and Reform regarding the level of additional financial support.