Arthur Morgan (Louth, Sinn Fein)
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Question 478: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the fact that Louth County Council had a water services capital balance of €18.3 million on 1 January 2010; that this council is prohibited from allowing the balance disimprove, that this council has had to raise a bank loan to pay local contributions to water projects in the county; and if he will make a statement on the matter. [38495/10]

John Gormley (Dublin South East, Green Party)
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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, Louth County Council received approval on 21 October 2010 to drawdown borrowing of €1.521m in respect of a number of schemes.

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.