Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

I move amendment No. 3:

In page 12, between lines 18 and 19, to insert the following:
"Amendment of section 6 of Local Government Act 19986. Section 6 (amended by section 6 of the Act of 2012) of the Local Government Act 1998is amended—

(a) by substituting the following subsection for subsection (2C):

"(2C) (a) Subject to paragraphs (b) and (c), the Minister may, on or before 31 December 2013, pursuant to a request from the Minister for Finance, make one, or more than one, payment out of the Fund in the amount requested by the Minister for Finance.
(b) When making a payment under paragraph (a), the Minister shall have regard to—

(i) the amount then standing to the credit of the Fund,
(ii) the payments due to be made in respect of expenses incurred or to be incurred by one or more local authorities in performing its or their functions generally, and
(iii) the payments due to be made under subsection (2A) (amended by section 44 of the Environment (Miscellaneous Provisions) Act 2011).

(c) The total amount of all payments made under paragraph (a) shall not exceed €150 million.",

and
(b) by deleting subsections (2D), (2E), (2F) and (2G).".

Amendment No. 3 inserts a new section 7. It is to provide for the transfer from the Local Government Fund to the Exchequer during 2013 as a necessary measure towards the reduction of the national debt. An amendment to the Local Government Act 1998 is necessary to allow for the legislative underpinning of the transfer. The amendment provides that in determining the payment, regard must had to the balance in the balance in the fund when all commitments have been made. The transfer is in respect of 2013 only. In 2012, €46.5 million of motor tax income was transferred from the local government fund to the Exchequer. This year an amount of up to €150 million is to be similarly transferred.

It should be noted that the projected income to the Local Government Fund for motor tax in 2013 is in excess of €1.1 billion. This is a balanced approach to meet both the needs of local authorities through the local government fund and to ensure that all sectors and sections of society make an appropriate contribution to tackling the financial situation in which we find ourselves.

I should stress that the Government is committed to supporting the Local Government Fund and it will retain the bulk of the income from motor tax to be used to fund local services. I understand there will be approximately €950 million in the fund after this income is transferred. Apologies, the balance will be in the order of €960 million even if the maximum of €150 million is transferred.