Catherine Murphy (Kildare North, Independent)
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140. To ask the Minister for Environment, Community and Local Government if local authorities are still restricted in accessing cash balances of development contributions held by them; if he is considering any changes in this area in view of the significant sums on balance and sums still owed; and if he will make a statement on the matter. [44676/14]

Alan Kelly (Tipperary North, Labour)
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Development contributions are a key part of securing investment in enabling infrastructure required to facilitate future development. A planning authority may, when granting a permission under section 34 of the Planning and Development Act 2000 (as amended), include conditions requiring the payment of a contribution in respect of public infrastructure and facilities benefiting development in the area of the planning authority. Each planning authority is required to include in its statutory accounts details of contributions received and information on how the contributions have been spent.

Local authorities are required to maintain a balanced Capital Account, meaning that any general capital expenditure/income must be balanced within the year; the spending of funds from capital reserves, such as those arising from development contributions, is included in this computation. This requirement is set out in Circular Fin 03/2009 (Control and Monitoring of Local Authorities Contribution to the General Government Balance) issued by my Department. More recently, Circular Fin 13/2012 requires that the local government sector continues to be managed in balance over the medium term and, in particular, that General Government Balance (GGB) neutrality is achieved.

This requires that local authorities strictly adhere to the stipulations in terms of ensuring balanced revenue and capital accounts. Spending from capital reserves must be sanctioned by my Department in the context of the management of the GGB for the local government sector.