Catherine Murphy (Kildare North, Independent)
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Question 512: To ask the Minister for the Environment, Heritage and Local Government the arrangements between local authorities and his Department in relation to local authority loans and overdrafts; his views on the extent of overdraft use by any local authority; and if he will make a statement on the matter. [42265/06]

Dick Roche (Wicklow, Fianna Fail)
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Local authority borrowing is subject to the provisions of section 106 of the Local Government Act 2001; borrowing is a reserved function and requires the sanction of the appropriate Minister.

Borrowing proposals, including overdrafts, must be submitted to the relevant Minister together with a resolution of the local authority members approving the proposed borrowing. Where sanction is sought from a Minister, other than the Minister for the Environment, Heritage and Local Government, my Department is consulted, in accordance with guidelines issued by the Department of Finance, on the ability of the local authority to meet the loan repayments involved.

The extent to which recourse to overdraft is used by local authorities for their normal operational purposes is dependent on the relative timing of receipts of income from their various revenue sources and expenditure in respect of their current and capital programmes.

All borrowing by local authorities is subject to the overall limits which are set by the Government from time to time in the context of the General Government Balance.