Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 155: To ask the Minister for the Environment, Heritage and Local Government the amount of financial adjustments he expects for each of the local authorities in the coming months; the impacts that he expects that this will have on service provision from the local authorities; and if he will make a statement on the matter. [25400/09]

John Gormley (Dublin South East, Green Party)
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I assume the question refers to current revenue and expenditure.

General purpose grants from the Local Government Fund are provided to supplement the income available to local authorities from local sources and from specific grants to enable them to provide an acceptable level of day to day services.

In October 2008 I announced provisional General-Purpose Grant allocations of €935.2m. As a result of lower than anticipated motor tax receipts it has been necessary to reduce the General-Purpose Grant allocation to local authorities by some €30m.

I have arranged today for publication of the Local Government (Charges) Bill 2009 and for its presentation to the Houses of the Oireachtas. The Bill gives effect to the Budgetary Decision in October 2008 to introduce a €200 charge on non principal residences. I anticipate that it will be enacted as soon as possible so that local authorities can benefit from the estimated €40 million revenue stream to which it will give rise in the current year. This will more than compensate the local government sector for the reduction in the General-Purpose Grant allocations.

The Government decision to introduce public sector pension-related measures applies to all public sector employees, including those employed by local authorities. The pension related deductions are being retained by local authorities and there will be a corresponding reduction in the Exchequer contribution to the Local Government Fund resulting in a neutral impact on local authority finances.

It is a matter for each local authority to determine its own spending priorities in the context of the annual budgetary process having regard to locally identified needs. I am satisfied that the level of funding provided through both general purpose grants and the new revenue stream arising from the charge on non principal private residences makes a significant contribution towards enabling all local authorities to provide a reasonable level of services to the public.