Written answers

Tuesday, 24 March 2015

Department of Environment, Community and Local Government

Local Authority Finances

Photo of Joan CollinsJoan Collins (Dublin South Central, United Left)
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888. To ask the Minister for Environment, Community and Local Government if his attention has been drawn to the fact that Sligo County Council has borrowings in excess of €23 million, which it is only capable of paying the interest on; if his attention has been further drawn to the fact that the council is incapable of paying off any of the principal; if his further attention has been drawn to the fact that his Department approved the loans in question; if his Department will now take responsibility for the financial difficulties of the council and provide a financial bailout to assist the council in reducing its debts; and if he will make a statement on the matter. [11529/15]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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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 authorising borrowing, and are democratically accountable for all expenditure by the local authority.

The continued deterioration of Sligo County Council's financial position is of serious concern to me. While it is a matter for individual local authorities to manage their own day-to-day finances in a prudent and sustainable manner, my Department is in regular consultation with the Council in relation to its financial position, including in relation to the agreement of a long term financial plan and debt management plan.

I have set aside an allocation of €1million in additional funding for 2015 for Sligo County Council to assist it to take the steps necessary to move to a more sustainable financial position; Sligo County Council also received an additional €250,000 in 2014 for these purposes. The payment of this additional funding for 2015 remains fully conditional on a realistic and achievable financial plan, which charts a path to long term financial sustainability, being agreed between my Department and the Council; this process is on-going.

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