Joan Collins (Dublin South Central, People Before Profit Alliance)
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Question 864: To ask the Minister for the Environment, Community and Local Government if it has been brought to his attention that Sligo County Council has had the highest overall deficit balance of all county and city councils in recent years (details supplied); if his attention has further been drawn to the fact that the members of Sligo County Council were informed at their monthly meeting on the 5 of March 2012 that the council's overall revenue account debt at the end of 2011 increased to €12.9 million and that the council's capital debt is now €73 million and that a majority of the members of the council approved an increase in the council's overdraft facility from €11 million to €14 million for the period April 2012 to September 2012; if he intends to sanction the increased overdraft; and if he will make a statement on the matter. [18667/12]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I refer to the replies to Question numbers 131 and 134 of 29 September 2011, 466 of 24 January 2012, 196 of 22 February 2012, 352 of 6 March 2012, 348 of 21 March 2012 and 186 of 29 March 2012, in which I stated that it is a matter for each local authority, including Sligo County Council, to manage its own day-to-day finances in a prudent and sustainable manner. At the request of Sligo County Council, I met with a delegation from the Council on 31 January 2012 to discuss its financial position, including its adopted 2012 budget. My Department continues to be in on-going consultation with the Council in relation to these matters.

I can confirm that a request for sanction to increase Sligo County Council's current overdraft facility from €11 million to €14 million was received by my Department on 26 March 2012. Following discussions between my Department and the Council, it was agreed that an increase in the current overdraft limit was not required immediately. I have conveyed my sanction for the continuation of the current overdraft limit of €11 million and this is to be kept under regular review.

In addition, I understand that Sligo County Council is to engage an independent financial consultant to prepare a report on the authority's financial position and present options for consideration and decision by the elected members. This report will inform and advise the Council members and management on possible ways forward in dealing with the challenging financial circumstances of the Council.

My Department has been consulted on the terms of reference for the review and I have asked to be provided with a copy of the report when it is complete.