Oireachtas Joint and Select Committees

Wednesday, 25 November 2020

Public Accounts Committee

2019 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 34 - Housing, Planning and Local Government.
Local Government Fund
Chapter 2 – Central Government Funding of Local Authorities.

4:30 pm

Ms Lorraine O'Donoghue:

As I said a moment ago, we have resubmitted the proposals to the Minister in recent days. I would not like to anticipate any decision that the Minister might make but suffice it to say that several of those issues were actively considered as part of the baseline review. These included issues such as population change, current population, geographic features, size of the country, etc. A range of issues were looked at and will be looked at again. One of the key issues that underpinned some of our thinking on the review group was that the data available and used to review baselines would be fully transparent and publicly available.

Deputy Murphy referred to the baselines. The needs-and-resources model was developed around 2000 and ran until 2008. It involved 600 layers of data being analysed every year. It was quite an inefficient process in terms of allocating local government funding. However, the current baselines in operation were essentially set at 2014 levels. No additional general-purpose funding through local property tax has been brought into that system since then, although they were adjusted marginally in 2017. It is fair to say that some of the issues Deputy Murphy has raised are relevant. Individual local authorities have changed somewhat. All of that has been factored into the proposals that are with the Minister at the moment.