Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

On behalf of the Minister for Housing, Local Government and Heritage, I thank the Senator for giving me the opportunity to speak about the funding of Longford County Council, and in particular the loss of income due to the closure of Lough Ree power station in Lanesborough. I believe I was present at the online meeting the Senator mentioned involving the Taoiseach, Tánaiste and Kieran Mulvey some time ago. I know the Senator made a very strong case on the issue on that occasion. It is good that he is taking the opportunity to continue dealing with this major issue for Longford, Offaly and other adjoining counties in the midland region. It is definitely a very important issue in Longford and Offaly.

Just transition is integral to the Government's climate action plan, and we are committed to supporting communities transitioning to a low-carbon economy. However, the Government acknowledges that the closure of power plants has a serious impact on the local economy. Longford and Offaly are the two most affected counties. In 2019, Lough Ree power station in Lanesborough accounted for approximately 16% of the rates receipts for Longford County Council.The Government recognises that this is a significant portion of the rates income of the local authorities, particularly against a backdrop of the Covid-19 pandemic and the financial impact it has had on ratepayers generally. As part of budget 2022, the Government announced an allocation of €1.3 million to Longford County Council in respect of the rates that would otherwise have been levied on the power station next year. Funding for the same reason was also provided this year, as the Senator knows.

In the wider context of rates, since revaluation in 2018, the rates base in Longford has increased by just over 7%, which is equivalent to an increase of about €590,000 in the rates levied. In addition, I note that the Programme for Government: Our Shared Future commits to bringing forward local property tax, LPT, reforms and streamlining commercial rates. The LPT reforms, brought into effect by the Finance (Local Property Tax) (Amendment) Act 2021, are bringing in new homes, that were previously exempt from LPT, into the taxation system as well as providing for all money collected locally to be retained within the county.

The Revenue Commissioners are currently conducting their first revaluation of LPT. Once the information on the new yield is available, the Department of Housing, Local Government and Heritage intends to conduct a review of the allocation process and funding baselines across the local government sector, which is very important. Any significant changes to the rates base of individual local authorities will be considered as part of this process.

In the absence of a more permanent solution to this issue in Longford, which also affects Offaly County Council, the Department of Housing, Local Government and Heritage will continue to engage with both local authorities, as part of the overall Government approach to just transition, with a view to developing a longer term solution for 2023 and beyond. In the meantime, I assure the House that the Government is committed to supporting the financial stability of local authorities and to the sustainable funding model of the sector. Once the review of the new LPT is complete, we will look at the long-term stability arrangements for the years to come. Pending that, we will keep in touch with the local authorities. That process can only commence now that the Revenue Commissioners are finalising details of the recent LPT revaluation. Rates in LPT are being looked at collectively.