Joanna Tuffy (Dublin Mid West, Labour)
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Question 490: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the fact that the proposed community centre for an area (details supplied) in County Dublin, a proposal that the residents have been working on for the past ten years, is being held up due to the freezing of €70 million of development funds within Fingal County Council, by him; and if he will sanction the county manager to release the necessary funding for this important social infrastructure. [27800/09]

Joanna Tuffy (Dublin Mid West, Labour)
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Question 492: To ask the Minister for the Environment, Heritage and Local Government if he will report on the delay in the construction of the community centre at an area (details supplied) in County Dublin in view of the fact that it is being held up due to the freezing of €70 million of development funds within Fingal County Council, by him; and if in view of the benefit to the social infrastructure of the area, he will sanction the release of the necessary funding for this scheme to Fingal County Council. [27802/09]

John Gormley (Dublin South East, Green Party)
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I propose to take Questions Nos. 490 and 492 together.

In February 2009, my Department set out details of the financial requirements for local authorities relating to the overall management of their capital and current accounts. These arise from the requirements for Government finances as a whole to be managed in accordance with the Stability and Growth Pact established under the Maastricht Treaty, and the associated limitation on budget deficits. This is not a new requirement for 2009, but current economic and budgetary considerations require all sectors, including local authorities, to ensure effective control and management of public finances.

In order to stay within the overall limit for the General Government Balance, it is necessary for local authorities to manage their finances and to maintain their current and capital accounts broadly in balance for 2009. Within this general requirement, there is capability for borrowing by local authorities for capital infrastructure. Development contributions have been an important addition to the capital funding resource of local authorities but they are only one element. Local authorities generate capital income from a variety of sources. There is no prohibition on Councils spending Development Contributions. The only requirement on local authorities is that they seek to equate capital income and capital expenditure in the year.

My Department will continue to work closely with local authorities, including Fingal County Council, to ensure that within the overall financial limits to be met, decisions on these matters are taken in a way which gives the necessary prioritisation to environmental, economic and social infrastructure and taking account of local community effort as part of the overall contribution to economic recovery.