Dáil debates

Tuesday, 18 February 2014

Other Questions

Road Projects Expenditure

3:15 pm

Photo of Eoghan MurphyEoghan Murphy (Dublin South East, Fine Gael)
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95. To ask the Minister for Transport, Tourism and Sport his views on whether local authorities should have greater discretion with regard to spending on local and regional roads. [7801/14]

Photo of Ray ButlerRay Butler (Meath West, Fine Gael)
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99. To ask the Minister for Transport, Tourism and Sport his views on whether local authorities should be given greater discretion with regard to spending on regional and local roads; and if he will make a statement on the matter. [7673/14]

Photo of Eoghan MurphyEoghan Murphy (Dublin South East, Fine Gael)
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What are the Minister's views on whether local authorities should have greater discretion on spending on local and regional roads?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 95 and 99 together.

The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority, in accordance with the provisions of section 13 of the Roads Act 1993. Works on these roads are funded from local authorities' own resources, supplemented by State road grants. The initial selection and prioritisation of works to be funded from this additional funding is also a matter for the local authority concerned.

Last month, I announced that a total of €331.9 million would be provided to local authorities for the maintenance and improvement of regional and local roads in 2014. I will give local authorities significantly increased flexibility this year. I have reduced the number of grant categories, increased the amount allocated under the discretionary grant heading and will facilitate the transfer of funds between key grant categories where local authorities need this. Local authorities can also re-prioritise their road strengthening programme where necessary. In addition, local authorities can use up to 15% of their discretionary grant for the local improvement scheme covering non-public roads.

In making adjustments to the regional and local road allocations in 2014, my primary aim has been, as far as is practicable, to strike an important balance. On the one hand, local authorities will have more flexibility than ever to target funding to appropriate repair and rehabilitation schemes in local areas. On the other hand, I want to ensure key programmes that promote preventative maintenance and safety projects on public roads continue to be funded. Given funding constraints, the Government's priority has to be to protect previous investment in the road network. In short, we are putting maintenance and repair first. It is also particularly important that local authorities do not reduce expenditure from their own resources on roads this year in view of the current difficult situation, and that they carefully reassess their planned road programmes for 2014 in light of the impact of the recent storms on their road networks.

In principle, I intend to give local authorities greater, possibly full, discretion over their spending of State grants for roads in 2015. I believe local authorities and their elected members are best placed to make decisions of where and for what roads funding should be spent in their own county rather than allowing that decision to be made by central government or the Department. This, however, will depend on wider Government consideration of the funding of local authorities and the various sources from which local authorities now receive their funds.

Photo of Eoghan MurphyEoghan Murphy (Dublin South East, Fine Gael)
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I thank the Minister for his response. His intentions and efforts in this area are very welcome. It is very important local authorities do not reduce their funding for road maintenance or for improvement works where they can happen. It is important to continue to invest in roads through maintaining existing local roads or improving road networks where we can, not only because of the recent weather issues but also in terms of investment and economic stimulus for the country. It is also important that individual local authority members rather than the executive take more responsibility in managing funding and prioritising where the money must go. It is not an unlimited amount of money, and some areas need more investment than others. It is for the individual members of Dublin City Council and other local authorities to make use of the money and they know how best to do it.

It is regrettable that the provision to each local authority of 80% of the funding from the local property tax raised in its area is not being maintained. We need to put this commitment back in place on a statutory basis for 2015 so that future Governments will not be able to reverse it.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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While no definite decision has yet been made on this, next year I would like to make a block grant to each local authority and leave it up to them to decide how they want to allocate it. If we are serious about local government, this is what we should be doing. As I pointed out earlier, this is only one source of funds that local authorities can use to improve roads. They can also use money from commercial rates. It is intended that next year 80% of the local property tax will go to the local authorities concerned, and this can be increased or decreased by up to 15%.

The Government is moving towards much greater discretion on the part of local authorities in how they raise and spend money on local and regional roads, which is what local government should be all about. As Deputy Eoghan Murphy will be aware, the local property tax is really a matter for the Ministers for Finance and the Environment, Community and Local Government. However, I am of a similar view to the Deputy, that we should ensure the aforementioned 80% commitment will be honoured in 2015 and that the money will stay at a local level and be spent locally.