Oireachtas Joint and Select Committees

Thursday, 8 October 2020

Committee on Budgetary Oversight

Pre-Budget Engagement: Minister for Public Expenditure and Reform

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

If I may, I would like to make one further point in regard to the previous question. The Deputy touched on the issue of servicing land. It is a key issue. People often talk about building houses, but there is very little talk about delivering the infrastructure that is needed, including the water and wastewater. This will require funding being provided to Irish Water and the local authorities to deliver those schemes. I recognise the importance of that work. We will not build the houses we need unless we provide the funding to deliver the infrastructure. I will put real focus on that issue because I recognise that nothing happens if the services are not in place.

On local authorities, it has been a really difficult year for them.

They have lost revenue across a number of different headings as a result of the impact of Covid-19. I am conscious of that. The Revised Estimates for the local government Vote has been approved so the funding for the commercial rates waiver will be released now by the Minister, Deputy O'Brien's, Department very quickly. We will be refunding 100% of the commercial rates that were waived, so that will be €600 million that will be transferred to local authorities. They would not always collect 100% but we will refund them 100%. In addition to that, I recognise there are deficits. If they are carrying significant deficits in the next year, that will be a difficulty for them in maintaining services. They are now preparing to enter their own budget process and have made decisions already around the local property tax, but officials in my Department and the Minister, Deputy O’Brien’s, Department are examining closely at the moment the outturn for this year to see what further help may be needed for local authorities, and I hope we can arrive at a conclusion quickly.

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