Ciarán Lynch (Cork South Central, Labour)

As the Minister said in his reply, the circular relates to the criteria set out by the Maastricht Treaty regarding borrowing being limited to 3% of gross domestic product. Section 3.1 of circular letter FIN 03/2009 states that it is most important that expenditure is funded by income received or due within the year. The environment committee held a meeting yesterday which was attended by the city and county managers. They were of the view, as I am after reading the circular, that development levies which were held on account on 31 December 2008 are ring-fenced and not for expenditure. A freeze has been put on this money. The Minister appears to be contradicting that view this afternoon. Will he clarify if local authorities can spend development levies held on account before 1 January 2009? There is a critical sum involved.

In September 2008, I put a parliamentary question to the Minister asking how much money in development levies was being held on account by local authorities. I still await a reply. The Minister said he would forward the figures to me, but they have not been furnished by the Department. The reason I ask this question is that the Comptroller and Auditor General told us at the start of the year that €1.5 billion was being held on account. If two thirds of that money has been spent in 2008, there is approximately €500 million still held on account. The €0.5 billion was paid by developers and people extending and carrying out other works on their homes to get infrastructural expenditure in their communities, be it water systems or a swing in a local playground. Is that money now tied up or can local authorities spend it? What the Minister said this afternoon appears to contradict what the city and county managers told the committee yesterday.

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