Nicky McFadden (Longford-Westmeath, Fine Gael)
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167. To ask the Minister for Environment, Community and Local Government if he will ensure that revenue collected from the local property tax is allocated in each local authority to the provision of adequate local services such as street lighting and waste collection; and if he will make a statement on the matter. [20671/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Under section 157 of the Finance (Local Property Tax) Act 2012, commencing in 2014, the Minister for Finance will pay into the Local Government Fund an amount equivalent to the Local Property Tax paid into the Central Fund during that year. Questions concerning the use of Local Property Tax revenue raised in 2013 should be directed to my colleague, the Minister for Finance.

The Government has recently indicated an intention to move, from 2014, to 80% retention of all Local Property Tax receipts within the local authority area where the Tax is raised. The remaining 20% of the Tax collected nationally will be re-distributed on an equalised basis to local authorities within the context of the annual allocations of General Purpose Grants.

I expect the Local Property Tax to have multiple benefits, including, a more sustainable and resilient system of funding for local authorities and therefore a sounder financial footing for the provision of essential local services; greater local scope for financial decision making concerning service provision - in particular, the inclusion of the local variation mechanism from 2015 will further increase the autonomy of local authorities; and, a strengthening of democracy at local level with a more active relationship between local authorities and local electorates. A stronger democratic relationship and clearer lines of accountability can only have a beneficial impact on service provision from the perspective of the service user.

Given the emphasis I have placed on the exercise of local autonomy in financial decision making which Local Property Tax revenues will support, I do not intend to be prescriptive as to the use of the Tax. I expect that all local authorities will exercise their autonomy in a prudent manner and with a view to maximising the benefit of the revenue raised by the Tax.