Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I assume the question refers to general purpose grants from the local government fund. As indicated in the reply to Questions Nos. 37 and 41 , the two principal sources of revenue for the local government fund are the proceeds of motor tax and the income from the household charge. The Local Government (Household Charge) Act 2011 provides that income from the household charge be paid into the local government fund. The proceeds from the household charge are being redistributed on an equalised basis to local authorities within the context of the annual allocations of general purpose grants.

General purpose grants contribute towards meeting the reasonable cost to local authorities of providing services to their customers. Some €651 million in general purpose grants had been allocated to local authorities for 2012. I have decided to withhold general purpose grant funding to local authorities in the third quarter of this year in light of the level of compliance, so far, with the household charge. It is estimated that €160 million will be collected each year as part of the local government budget, and this was part of the budget at the beginning of the year for each local authority. As of 14 September, €103 million had been collected nationally. A total of €15.69 million was withheld from the third quarter general purpose grant payment, which represents a reduction of between 1% and 3% of the total general purpose grant allocation for 2012.

I am keeping the income generated from the household charge under constant review. It is up to individual local authorities to address potential funding shortfalls arising from non-compliance with the legislation and to pursue those who may have a liability and initiate court proceedings, where it is considered appropriate. Local authorities can progressively recoup their original general purpose grant allocation through improved household charge compliance. The final amount of general purpose grants available for 2012 will be revisited and reviewed in the final quarter of the year to take account of the then financial position, including progress on securing an increased household charge yield. I am confident that the level of general purpose grants, together with other Government grants and subsidies and income raised from local sources, is appropriate to meet the costs of providing a reasonable level of local authority services to communities.

The tabular statement sets out the information requested in respect of individual county and city councils.

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