Billy Kelleher (Cork North Central, Fianna Fail)
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To ask the Minister for Environment, Community and Local Government the total amount of money reduced from local government fund payments per local authority area due to their payment rates of the household charge; and if he will make a statement on the matter. [54185/12]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The two principal sources of revenue for the Local Government Fund are the proceeds of motor tax and the income from the Household Charge. The Local Government (Household Charge) Act 2011 provides that income from the charge is to be paid into the Local Government Fund. The proceeds from the household charge are being re-distributed on an equalised basis to local authorities within the context of the annual allocations of general purpose grants. General purpose grants contribute towards meeting the reasonable cost to local authorities of providing services to their customers. Some €651m in general purpose grants had been allocated to local authorities for 2012. It has been necessary to reduce general purpose grant funding to local authorities in the third and fourth quarters of 2012 in light of the level of compliance with the household charge.

It is estimated that there are some 1.6 million residential properties potentially liable for the household charge. As such, if collected in full, the household charge has the potential to raise €160 million annually. As of 29 November 2012 some €111.2m had been collected nationally. A reduction of some €15.7m was applied to the third quarter general purpose grant payment. In the final quarter of the year those authorities achieving a collection rate of 65% or above have not had a further reduction in their general purpose grant payment. Local authorities achieving a collection rate of 60-65% have incurred a further reduction of 0.5%, while those authorities achieving a compliance rate below 60% have incurred a further 1% reduction in their annual allocation. For those authorities with a collection rate below 65%, and thereby incurring a further reduction in quarter 4, the final amount of general purpose grants available for 2012 will be revisited and reviewed at end year to take account of the financial position at that stage, including progress on securing an increased household charge yield. The table sets out the information requested.