Written Answers. - Parliamentary Debates - Houses of the Oireachtas
Written Answers. - Parliamentary Debates - Houses of the Oireachtas
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 />
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