Dáil debates

Wednesday, 19 October 2016

Topical Issue Debate

Local Authority Funding

5:55 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I thank the Deputy for the opportunity to respond on this issue again. As he said, we will have an opportunity to discuss it next Thursday when we will meet to discuss these issues. I want to put on record a number of points. Nobody disputes that the financial challenges Sligo County Council faces are significant. That is the reason there is a financial plan in place to help Sligo County Council get back on an even keel from a financial management perspective.

The current chief executive of the local authority has done a very good job in many ways in terms of trying to achieve many of the targets that have been set. If we consider the improved position in terms of rates collection, for example, what has been done in terms of reducing staff numbers, maintaining output, services and so on. However, it is important to say that Sligo is the only county in the country that has a financial plan of this type whereby there is an agreement by the Department that if certain targets which have been signed up to by the local authority are met, my Department would sanction an extra €1 million to support the council in terms of the financial difficulties it faces. Clearly, that was not enough this year.

The chief executive wrote to me and then subsequently met me, along with the cathaoirleach of the council. We went through that letter and as far as I know, everything that was asked for in terms of flexibility, has now been given. That is an extra six staff for library services plus the money to pay them rather than simply sanctioning increased staff numbers as is the case for most other local authorities when they get extra staff, and other considerable flexibilities in terms of meeting some payment schedules next year rather than this year.

We continue to work with the chief executive and Sligo County Council on trying to meet and, when necessary, amend the financial management plan that is in place to try to help Sligo County Council get back to a situation where the financial management is sustainable again. What is being asked for here is that we start the process of negotiating a new financial plan when we only signed off on this one less than 12 months ago. What I am saying is that the basis for us will be the current plan but we want to work with management and we have been willing to show flexibility and provide extra supports to help Sligo County Council move through the process of getting back to a sustainable financial position. It is a difficult journey, and I am not pretending it is not.

I believe the chief executive has done a good job since he came in. He inherited a very difficult situation and much progress has been made in the first year since that plan was agreed last December. However, while we are making that progress, which has been difficult, I do not believe it is advisable to simply bin it and start again. Instead, we should work with that plan. We have already recalculated and reset some of the targets, given the changes and the accommodation that we have given on request from the management. There is a big onus on the management team to respond. Ultimately, it is their responsibility to manage the finances of the council. We are here to help in that. We are doing that at the moment, and have shown a good deal of flexibility in that endeavour, but the idea that we should simply tear up and start again will create many other problems.

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