Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

308. To ask the Minister for Housing, Planning, Community and Local Government the amounts of development contributions which have been collected and unspent by local authorities; if arrangements remain in place that only permit local authorities to spend the equivalent of the amount they take in in the current year; if not, when and the way the position was relaxed; if there are further planned changes; if so, the details of same; and if he will make a statement on the matter. [18027/17]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The charging of development contributions allows local authorities to recoup some of the costs to public funds of servicing land for private development, without which the development could not proceed. Development contributions can only be levied as capital funding for public infrastructure and facilities and as such, cannot be used to pay current costs. Income from development contributions must be ring-fenced to pay for facilities servicing new development, for example, for roads, footpaths, public lighting and open spaces and it is a matter for each local authority to determine the allocation of those incomes, having regard to the provisions of sections 48 and 49 of the Planning and Development Act 2000, as amended.

It should be noted that local authorities operate on an accrual accounting basis and therefore recognise income and expenditure as incurred relating to the period, regardless of the cash transactions. The Annual Financial Statements (AFSs), therefore, do not show cash movements or cash on hand in relation to development contributions but show the invoiced income and the amount of development contributions due to local authorities. Information on the monetary value of development contributions collected and unspent by local authorities at year end is not available in my Department. My Department is currently reviewing management information being collected from the local government sector, including in respect of development contributions, and may make some changes to requirements in the coming year, following consultation with local authority Directors of Finance.

My Department is responsible for monitoring the local government sector’s compliance with fiscal rules set out as part of the management of the Stability and Growth Pact. These include the contribution of the local government sector to the General Government Balance (GGB) and also controls to be exercised under the Expenditure Benchmark requirements. Arising from the Government’s effort to meet commitments in relation to the General Government Deficit limit, local authorities have been directed that, similar to the revenue account activity, capital expenditure should not exceed capital income within the reporting year. The precise manner in which capital and current accounts are managed in order to achieve the overall balance necessary is a matter for individual local authorities themselves. However, within these overall limits, there is additional capacity for the expenditure of built-up capital balances and own resources funded by development contributions on hand by local authorities, which must be sanctioned by my Department. In reviewing requests for sanction, consideration is given to ensuring that priority infrastructural investment can proceed, that contractual commitments and on-going projects can proceed and that development contributions already collected and aligned to specific capital projects can be utilised efficiently.