Leo Varadkar (Dublin West, Fine Gael)
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Question 84: To ask the Minister for the Environment, Heritage and Local Government the expected reduction in the Local Government Fund for 2011; if guidance has been issued to local authorities as they prepare their budgets; and if he will make a statement on the matter. [37496/10]

John Gormley (Dublin South East, Green Party)
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The 2011 Local Government Fund will be financed from the full proceeds of motor tax income in 2011 and an annual contribution from the Exchequer. The Exchequer contribution to the Fund will be announced in the context of Budget 2011.

I will continue to contribute to the general purpose funding of local authorities to the best extent possible, having regard to the current pressures on the public finances and motor tax income. Local authorities will also continue to have access to an additional source of funding through the charge on non-principal private residences.

My Department has not issued any formal guidance to local authorities on the preparation of their budgets. The adoption of a budget is a reserved function of the local elected members and is a matter in which I have no function. However, my Department maintains regular liaision with local authorities having regard to their own particular financial situation and the need to frame budgets in this context.