Ciarán Lynch (Cork South Central, Labour)

Around this time last year, the House debated a circular letter that was issued by the Minister requiring local authorities to keep on account whatever incomes they had derived from development levies on foot of the Maastricht criteria. It was suggested that over €1 billion had been acquired by local authorities across the country during the period of the property bubble. The difficulty is that much of the money that was being held by local authorities, which derived from development levies, was being used to improve water systems, supplies and infrastructure. The Minister has decided to ring-fence, or lock in, such money. Even though they have the money on account, local authorities are no longer able to spend it on doing works of this nature. Is it the case that local authorities which have had this development levy money for two years will be unable to spend it this year as a consequence of the circular letter that was sent by the Minister last year?

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