Written answers

Tuesday, 8 April 2014

Department of Environment, Community and Local Government

Local Authority Funding

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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383. To ask the Minister for Environment, Community and Local Government if his attention has been drawn to the fact that in a letter to Sligo County Council dated 18 December 2013, his Department indicated that €1million had been set aside from the Local Government Fund for Sligo County Council and that the funding would be provided to the council in 2014 on the basis of an agreed long-term financial plan between the council and his Department, which would detail the council's proposals for dealing with the council's accumulated deficit and on condition of ongoing review of the implementation of the agreed plan by way of quarterly review meetings between the council and his Department; if his Department intends to provide further additional funding to Sligo County Council in the current year to assist the council in paying the significant legal debts and the costs imposed by the Supreme Court arising from the Lissadell rights of way legal case; if his attention has been drawn to the fact that Sligo County Council did not make any provision in its annual budgets in respect of legal and other costs for the Lissadell case; if his attention has been drawn to the fact that according to the most recent auditors report released in November 2013, the council's total revenue-capital debt had increased to €94 million; the avenues that are open to a local authority in such dire financial circumstances to acquire funding to settle such legal costs; and if he will make a statement on the matter. [16502/14]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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It is a matter for each local authority, including Sligo County Council , to determine its own spending priorities in the context of the annual budgetary process having regard to both locally identified needs and available resources. The elected members of a local authority have direct responsibility in law for all reserved functions of the authority, which include adopting the annual budget , and are democratically accountable for all expenditure by the local authority , including authorising the incurring of additional expenditure .

€1m was held back from the original general purpose grant allocation to Sligo Council. The subsequent letter from my Department made the allocation of this €1m conditional on an agreed long term financial plan to address the Council’s accumulated deficit being adopted by the Council in early 2014. The allocation of the €1m in 2014 is fully conditional on a realistic and achievable plan which charts a path to long term financial sustainability being agreed between my Department and the Council.

I am aware of the financial position of Sligo County Council and, while it is a matter for individual local authorities to manage their own finances in a prudent and sustainable manner, my Department is in regular and ongoing consultation with Sligo County Council in relation to their financial position.

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