Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 419: To ask the Minister for the Environment, Heritage and Local Government the reason Louth County Council is restricted from lowering capital account balances below 2008 year end amounts and if he is satisfied that this local authority was forced to raise a loan for €1,521,000 as its contribution towards the water services capital programme. [37143/10]

John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

My Department set out details of the financial requirements for local authorities relating to the overall management of their capital and current accounts in 2009 and 2010. 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.

I appreciate that these requirements, while not new, impose a particular degree of financial discipline on local authorities. Current economic and budgetary considerations require all sectors, including local authorities, to ensure effective control and management of public finances.

In relation to the water services capital programme, my Department issued approval to Louth County Council for borrowing up to €1.537m in 2010. Louth County Council has recently submitted a formal application for approval to drawdown borrowing of €1.521m in respect of a number of schemes. This application is currently under examination and a reply will issue to the Council shortly.

My Department will continue to work closely with local authorities to ensure that, within the overall financial limits set, the necessary prioritisation is given to environmental, economic and social infrastructure as part of the overall contribution to economic recovery.