Claire Kerrane (Roscommon-Galway, Sinn Fein)
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Galway County Council is in a funding crisis. This is not news to the Minister of State. It has been raised in this House many times over many years. The question is why. It is because it is not getting its fair share of funding from central government. The facts speak for themselves. Galway is the second largest county in Ireland and it has the third highest population across the State, only behind Dublin and Cork. The funding allocation it receives makes no sense. The Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, would tell us that funding is determined by size, population, population distribution and demands for public services. Looking at funding per capita, there are serious and very obvious discrepancies with other counties smaller than Galway. Deputy Mairéad Farrell and I have raised those discrepancies before. Kerry, Donegal and Tipperary are all smaller than County Galway and they received funding of more than €900 per capita. Mayo received more than €1,000 per capita while Galway received €670 per capita. In 2018, there were increases across the board of between €82 and €121 per capita. Galway's increase was €22. The level of funding is totally inadequate for Galway County Council. It impacts on every single person living in County Galway. It means roads cannot be maintained and housing maintenance cannot be carried out. It impacts on the delivery of every single service right across the board and it impacts on the development of amenities in County Galway. The representatives for County Galway are totally on the same page about funding when it comes to Galway County Council. This issue goes far beyond politics. Given that the budget has now been framed, will the Minister of State look at funding for Galway County Council?

Mairead Farrell (Galway West, Sinn Fein)
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Táimid ag ardú cheist maoinithe Chomhairle Chontae na Gaillimhe. Tuigeann chuile dhuine nach bhfuil a dhóthain airgid á fháil ag Comhairle Chontae na Gaillimhe le blianta fada. Feictear é sin go soiléir sna bóithre agus na droichid i gConamara. Fiú inniu, tá Bóthar Chuan na Luinge faoi uisce arís. Sílim go bhfuilimid ar fad ar aon intinn ar an gceist seo. Tuigeann chuile dhuine go dteastaíonn tuilleadh airgid agus sílim ón méid atá ráite ag an Rialtas cheana go bhfuil sé sásta breathnú ar an gceist seo agus cabhrú le Comhairle Chontae na Gaillimhe. Tá an cháinaisnéis á dhéanamh faoi láthair ag Comhairle Chontae na Gaillimhe. Tá sé fíorthábhachtach go mbeadh an chinnteacht sin ag an gcontae ag an bpointe seo.

My colleague, an Teachta Kerrane, and I want to raise again the issue of funding for Galway County Council. I think there is political consensus in this regard. Everyone is aware of the difficulties surrounding the funding that has been allocated over the years to Galway County Council. It is my understanding from a variety of meetings that the Government is looking to act on it at this point.

We know Galway County Council is looking at its budget at the moment. It is really crucial that it gets certainty on that now. If we take a look at the roads and bridges across Connemara, we see the very severe issues caused by lack of funding. Two new funding streams have been allocated as a result of the increase in energy costs as well as pay deals, which is absolutely welcome. However, it is important to have certainty going forward into this budget process that there will be increased funding for Galway County Council.

Peter Burke (Longford-Westmeath, Fine Gael)
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I thank both Deputies for giving me the opportunity to outline funding and Government support for local authorities, with particular reference to Galway County Council.

Across all schemes and funding sources, my Department provided €82.9 million in 2020, €84.4 million in 2021 and €24 million to the end of September 2022 to Galway County Council. Included in this is the unprecedented level of support provided by central government during the Covid-19 pandemic.

In 2020, Galway County Council applied a 100% commercial rates waiver to just over 3,500 businesses and recouped €10.2 million in that regard. In addition, in recognition of Covid-related income losses and additional expenditure incurred, my Department provided funding of €2.5 million to Galway County Council in 2020. This support continued in 2021 when the Government introduced a nine-month commercial rates waiver applying to businesses most seriously affected by the restrictions, and a more targeted waiver for the final quarter of the year. Galway County Council received €7.3 million for this waiver and an additional €1 million for Covid-related income losses and expenditure for 2021.

The total cost of the waiver for the local government sector for 2020 and 2021 was €1.2 billion, and €191 million was paid out in additional support towards lost income and expenditure for the same period. In addition, the limited quarter 4 rates waiver has been extended to the first quarter of this year at an estimated cost of €61 million. Galway County Council will receive a recoupment of €950,000 in respect of this waiver.

For 2023, the Government is making a significant contribution of €421 million to support local authorities. A large portion of this figure, €287.2 million, will go towards assisting local authorities with the cumulative effect on pay costs arising from the national pay agreements and the unwinding of the financial emergency measures in the public interest, FEMPI, legislation. This allocation will ensure that local authorities will have the necessary resources in terms of people to perform their functions and provide essential public services to our citizens; in excess of 1,000 services, in fact. The pay allocation for Galway County Council for 2022 is €5.8 million. This will rise to €8.1 million in 2023 to take account of the most recently ratified pay agreements.

As committed to in Programme for Government: Our Shared Future, the move to 100% retention of local property tax, LPT, will take place in 2023. All equalisation funding will now be met by the Exchequer to ensure all authorities receive, at a minimum, an amount equivalent to their baseline. Local authorities may also vary their local property tax rates by up to 15%. Authorities that increase the rate retain 100% of the additional income. Galway County Council will receive €155,561 in local property tax equalisation funding for 2023 in addition to the expected €14.3 million LPT yield to achieve a baseline funding level of €14.5 million.

We secured an additional one-off allocation of €2.75 million for Galway County Council for 2023 in recognition of the current financial challenges facing the authority, plus the additional €1.75 million in supplementary support in recognition of the increasing costs of service provision. This brings the total additional support for Galway County Council to €12.8 million for 2023, which is a considerable contribution from central government that should assist the authority in the challenging year ahead.

As I said, I had a number of meetings with Galway County Council and with my colleagues, Deputy Cannon and Senators Kyne and Dolan, regarding to the additional funding. The €12.8 million is a very strong contribution to the local authority in additional funding for 2023. My door is always open to further engagement with the local authority.

Claire Kerrane (Roscommon-Galway, Sinn Fein)
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With regard the one-off payment allocation of €2.75 million for Galway, can the Minister of State advise whether that one-off payment will go to all local authorities? Of course, it is just a one-off. When we look at the discrepancies that exist with regard to funding, there is a clear issue. I do not hear the Government or Ministers acknowledging the issue regarding the level of funding Galway is receiving. There is a very obvious issue and I do not feel the Government recognises that.

The last time we raised this issue, the fact that Galway County Council opted out of increasing the local property tax was also raised. The nub of the issue is funding from central government, however. It would be very hard for Galway County Council to raise local property tax when we look at the amenities, the state of the roads and the level or lack of maintenance. People cannot be expected to pay higher local property tax and receive nothing in return. I see it in my office in Ballinasloe all the time. People come in with issues and we cannot move them forward, especially with regard to staffing. Another really major issue is the lack of outdoor staff in Galway.

Mairead Farrell (Galway West, Sinn Fein)
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The crux of the issue is the one-off allocation of €2.75 million the Minister of State mentioned. I will be interested to hear his response to my colleague's question whether that is related to the additional one-off payment that I mentioned in my initial opening remarks and which I welcomed in this Chamber. The point is that it does not come to the crux of the issue and the serious lack of funding. The whole point is that everybody from Galway has absolutely been in agreement that there has been a lack of funding for Galway County Council. It is really important at this point to ensure there is engagement with the council when it is putting together its budget. Specifically, councillors have been raising directly with us how worried they are about framing this budget in this context.

Peter Burke (Longford-Westmeath, Fine Gael)
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In the first instance, the €2.75 million is for Galway alone, not other local authorities throughout the country. That is a recognition of the total allocation of €12.8 million for 2023. That is a significant allocation by the Government at a time when moneys are, as we know, difficult to raise in the current circumstances.

I acknowledge Galway County Council is doing work in terms of its commercial rate space and also in terms of the €60 million supplementary support fund, of which it will be a key beneficiary. That will hopefully help it with the escalating costs of the inflationary crisis. However, I will note that one of the resolutions to this complex process and the funding of local authorities is the comprehensive review of current LPT baselines, which is happening in the coming months. That is starting to commence and will hopefully be concluded early next year. It is hoped that will give a very clear insight into the mechanisms in terms of allocating funding to local authorities. As I have always pointed out, my door is open to engagement with Galway County Council, as it has been since my appointment as Minister of State. I met with its representatives a number of times. I absolutely understand the acute nature of its financial position and the circumstances it is in. That is why the Government has made such significant support available to it this year and, I would add, in previous years.