David Stanton (Cork East, Fine Gael)
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Question 188: To ask the Minister for the Environment, Heritage and Local Government if he has issued a directive to local authorities putting restrictions on them from using internal capital receipts in 2008 for current year expenditure; the reasons for same; if he will reconsider such a directive; and if he will make a statement on the matter. [25188/08]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Under Section 211 (4) of the Planning and Development Act 2000, as amended by the Local Government Act 2001, internal capital receipts shall be applied for a capital purpose for which capital money may be properly applied or for such purposes as may be approved by the Minister whether generally or in relation to specified cases or circumstances.

In 2006, my Department issued a circular letter in relation to the devolution of control for this function to local authorities, subject to certain terms and conditions, from 1 January 2007. Under these new procedures authorities are required to submit an annual programme of works to be funded by internal capital receipts, primarily for the planned maintenance and improvement of their existing housing stock, for approval by the Department. In December 2007, a further circular letter issued, which provided for an expansion of the categories of allowable expenditure from internal capital receipts under the annual improvement works programme. My Department has not issued any restrictions on the categories of activity or levels of activity for 2008.