Mr. Seamus McCarthy:

I thank the Chairman. The 2019 Appropriation Account for Vote 34 Housing, Planning and Local Government records gross expenditure of €3.96 billion. The appropriation account is presented under five programme headings. Some €2.37 billion, or almost 60% of the total, was spent on a wide range of schemes that together constitute the housing programme. A further €1.29 billion, or just under one third of the total, was spent on the water services programme, and comprises mainly payments to Irish Water. Just under €211 million was spent on the local government programme. Some €68 million was spent on the planning programme. And just under €28 million was spent on Met Éireann.

The surplus at the year-end was €40.1 million. Of this, €33.5 million related to unspent capital allocations associated with the planning programme which were carried forward to 2020. I issued a clear audit opinion on the account. However, I drew attention to the disclosures in the statement on internal financial control as to some non-compliant procurement by the Department of Housing, Local Government and Heritage during the year.

The Local Government Fund is managed separately from the Vote, by the Department. There have been a number of changes in the source of funding for the fund in recent years. It is now funded by the proceeds of the local property tax, or LPT, and a transfer from the Vote. In 2019, LPT receipts into the fund amounted to €473 million. This was down marginally from the level of receipts in 2018. The transfer to the fund from the Vote in 2019 amounted to €185 million. This was up by €60 million, or 48%, year on year. Total receipts were €658 million. The fund expenditure in 2019 amounted to €644 million. The bulk of this was accounted for by transfers to local authorities. At the end of December 2019, the fund’s reserves stood at just under €99 million. Again, I issued a clear audit opinion also as to the fund account.

Because of the complex ways that central Government funds flow to individual local authorities, chapter 2 is compiled each year to present an overview of the level and purpose of the funding provided. The chapter also outlines the oversight of local authorities’ financial performance by the Department, the Local Government Audit Service and the National Oversight and Audit Commission.

In 2019, transfers of funding from central Government sources to local authorities amounted to a total of €4.17 billion – an increase of 13% from 2018 funding. More than 90% of the central Government funding for local authorities came from three sources: Vote 34; the Local Government Fund; and Vote 31 for Transport, Tourism and Sport. Of the total of €4.17 billion central Government funding, almost €2.4 billion was provided to local authorities for housing and regeneration. A further €882 million was provided for transport investment.

I will introduce the chapters which are the focus of tomorrow's meeting in advance of that meeting tomorrow. I thank the Chairman.