Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

Essentially, this is about ensuring a more transparent line of sight over the funding into Irish Water from my Department. Sections 54 to 59 give effect to a change in funding sources to and from the local government fund and the central fund arising from the report of the working group on the future funding model for Irish Water. All of these changes are on an Exchequer neutral basis and are designed, as I said, to improve transparency to the funding of Irish Water and to ensure that, as recommended, Irish Water will be funded from general taxation. In summary, section 54 provides that from 2018 the local property tax, which is currently remitted to the central fund, will be remitted directly to the local government fund. There is no change to the system of administering and collecting LPT by the Revenue Commissioners.

Sections 55 to 59 are amendments to the Local Government Act 1998, which established the local government fund, LGF, to provide that motor tax, instead of being transferred to the local government fund, as is currently the case, will be paid to the Minister for Transport, Tourism and Sport and then transferred to the Exchequer. There will be no change to the administrative structures in terms of motor tax collection either online or at motor tax offices and payments in respect of roads and other public transport infrastructure to the Department of Transport, Tourism and Sport, which up to now could be made from the local government fund, funded by motor tax, will no longer be possible. These payments will instead be routed through the Vote of that Department. Similarly, payments to Irish Water from the local government fund will no longer be possible. These payments will instead be routed through the Vote for my Department. This is essentially a streamlining of the process.