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Written Answers. - Parliamentary Debates - Houses of the Oireachtas

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Questions— 14 February 2012. <strong>Written</strong> <strong>Answers</strong><br />

contribution <strong>of</strong> new capital works; if any <strong>of</strong> <strong>the</strong>se funds are at risk <strong>of</strong> being refunded on <strong>the</strong><br />

basis <strong>of</strong> time limits for carrying out works; <strong>the</strong> amounts that are held by local authority and<br />

<strong>the</strong> years <strong>of</strong> same; and if he will make a statement on <strong>the</strong> matter. [7661/12]<br />

Minister for <strong>the</strong> Environment, Community and Local Government (Deputy Phil Hogan): In<br />

February 2009, my Department set out details <strong>of</strong> <strong>the</strong> financial requirements for local authorities<br />

relating to <strong>the</strong>ir overall management <strong>of</strong> capital and current accounts. These requirements flow<br />

directly from <strong>the</strong> requirement for Government finances as a whole to be managed in accordance<br />

with <strong>the</strong> Stability and Growth Pact established under <strong>the</strong> Maastricht Treaty, and <strong>the</strong><br />

associated limitation on budget deficits. The Government set a limit <strong>of</strong> €200m for <strong>the</strong> contribution<br />

<strong>of</strong> <strong>the</strong> local government sector to <strong>the</strong> deterioration in <strong>the</strong> General Government Balance<br />

(GGB) in any one year. This is not a new requirement. However, <strong>the</strong> downturn in <strong>the</strong> economy<br />

and substantial pressures on Government funding generally require a sharp focus in all sectors,<br />

including local authorities, to ensure effective control and management <strong>of</strong> public finances.<br />

In order to stay within <strong>the</strong> overall GGB limits, it is necessary for local authorities to maintain<br />

both <strong>the</strong>ir current and capital accounts broadly in balance. The only restriction on local authorities<br />

is that, in aggregate, capital income equals capital expenditure in <strong>the</strong> year. Balance is<br />

only required at an overall level and this allows considerable scope for authorities to draw on<br />

<strong>the</strong>ir existing capital reserves as an element <strong>of</strong> <strong>the</strong>ir overall investment programme. The precise<br />

manner in which capital and current accounts are managed in order to achieve <strong>the</strong> overall<br />

balance necessary is a matter for individual local authorities <strong>the</strong>mselves. However, within <strong>the</strong>se<br />

overall limits, <strong>the</strong>re is additional capacity for non-mortgage borrowing and <strong>the</strong> expenditure <strong>of</strong><br />

capital balances on hand by local authorities. Subject to <strong>the</strong> maintenance <strong>of</strong> balanced current<br />

and capital accounts, and allowing for <strong>the</strong> repayment <strong>of</strong> existing borrowings, up to €250m in<br />

new loan finance and expenditure <strong>of</strong> capital balances on hand can be made available to <strong>the</strong><br />

local government sector annually to fund capital investment in necessary infrastructure projects.<br />

The process <strong>of</strong> prioritising applications for such projects for 2012 is underway and my Department<br />

is being guided by local authorities in respect <strong>of</strong> <strong>the</strong> most critical projects requiring<br />

funding at this time.<br />

While I appreciate that <strong>the</strong>se GGB requirements impose limitations on local authorities,<br />

<strong>the</strong>re are considerable funding constraints at all levels <strong>of</strong> Government. It is a matter for every<br />

local authority to determine its own spending priorities in <strong>the</strong> context <strong>of</strong> <strong>the</strong> annual budgetary<br />

process having regard to both locally identified needs and available resources within <strong>the</strong> GGB<br />

limits as set out. The latest year for which we have complete audited information is 2009.<br />

The overall Development Contributions balance, comprising both cash and debtors, at <strong>the</strong> 31<br />

December 2009, is some €962 million. The funds involved are being released over time as<br />

projects progress to completion. Development contributions are refundable in respect <strong>of</strong> special<br />

contributions imposed under section 48(2)(c) <strong>of</strong> <strong>the</strong> Planning and Development Acts 2000-<br />

2010. Section 48(12) <strong>of</strong> <strong>the</strong> Act sets out <strong>the</strong> relevant refund provisions.<br />

Departmental Staff<br />

426. Deputy Mary Lou McDonald asked <strong>the</strong> Minister for <strong>the</strong> Environment, Community<br />

and Local Government if he will provide an organisational chart detailing <strong>of</strong>ficials and <strong>the</strong>ir<br />

responsibilities within his Department. [7738/12]<br />

Minister for <strong>the</strong> Environment, Community and Local Government (Deputy Phil Hogan):<br />

Information in respect <strong>of</strong> <strong>the</strong> organisational structure and associated Heads <strong>of</strong> Business Units<br />

<strong>of</strong> my Department is available at www.environ.ie/en/AboutUs/OrganisationalStructure/.<br />

Local Authority Charges<br />

427. Deputy Peter Ma<strong>the</strong>ws asked <strong>the</strong> Minister for <strong>the</strong> Environment, Community and Local<br />

523

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