Dáil Éireann Debate, Wednesday - 14 December 2022
94. Deputy Patricia Ryan asked the Minister for Housing, Local Government and Heritage the reason that the cost of funding the changes recommended by the Moorehead Report is not being centrally-funded for local authorities into 2023; and if he will make a statement on the matter. [62603/22]
Amharc ar fhreagraOn 1 July 2021, with the agreement of Mr Michael McGrath TD, Minister for Public Expenditure and Reform, I gave effect to new regulations implementing proposals approved by Government to reform the remuneration and allowances payable to local councillors. This was in line with the Programme for Government commitment to implement the Moorhead Report within 12 months.
It was agreed that the additional cost to local authorities would initially be met from central funds and thereafter from local authorities' own funds. This was due to no budgetary provision having been made by local authorities for 2021 since the Government decision was made after the 2021 budgetary processes had concluded.
When negotiating the budget for 2022 it was agreed with the Department of Public Expenditure and Reform, as an exceptional measure, that local authorities could once again be assisted with funding for additional costs in relation to the implementation of councillor pay reforms. This was agreed in the context of the financial difficulties faced by local authorities as a result of COVID-19 pandemic.
No specific provision has been made in 2023 in relation to the costs of implementing the Moorhead Report. This is a resumption of normal practice as, prior to 2021, there was no specific allocation from central funds for the purpose of councillor remuneration.
Nonetheless it should be acknowledged that the Government is making a significant contribution in 2023 of €481 million to support local authorities. A large portion of this amount, €287.2 million, will be to assist local authorities with the cumulative effect on pay costs arising from the national pay agreements and the unwinding of the financial emergency measures in the public interest legislation.
