Noel Grealish (Galway West, Independent)
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216. To ask the Minister for Housing, Planning, Community and Local Government the process and criteria for distributing the moneys from the LPT equalisation fund; when the fund was established; if it has been reviewed since its formation; when the next review is proposed; and if he will make a statement on the matter. [25401/17]

Simon Coveney (Cork South Central, Fine Gael)
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Local retention of Local Property Tax (LPT) began in 2015 and is now established as an alternative and essential source of funding for the local government sector, which reduces reliance on central funding. The Government decided that 80% of the estimated LPT liability in each local authority area for a given year is retained in that area to fund public services, notwithstanding any local variation decisions. The remaining 20% of LPT is re-distributed to provide equalisation funding to those local authorities that have lower property tax bases, due to the variance in property values and density across the State. This reflects the fact that local authorities vary significantly from one another in terms of size, population, public service demands, infrastructure and income sources.

In accordance with decisions taken by Government regarding the distribution of LPT funding, every local authority has a minimum level of funding available to it known as the LPT baseline. Equalisation is the process that ensures that every local authority’s LPT allocation is brought up this baseline. T he LPT funding baseline in 2017 is linked to previous General Purpose Grant amounts and Pension Related Deductions retained by authorities in 2014.

Funding for equalisation purposes is provided via the Local Government Fund. The shortfall between the 20% contribution from all local authorities and the total amount required for equalisation is met by the Exchequer. LPT allocations amounts and the distribution of equalisation funding in the years 2015 to 2017 are published on my Department’s website at the following weblink: .

My Department keeps the allocation mechanism under review to ensure equitable treatment of all local authorities. Matters relating to equalisation and allocation methods for future years will be reviewed as necessary and appropriate.