Éamon Ó Cuív (Galway West, Fianna Fail)
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1200. To ask the Minister for Housing, Planning, and Local Government when the review of local authority finances will be completed; if the results of this review will be reflected in the allocation of funding to Galway County Council in 2019, particularly in view of the fact that the council is critically short of the necessary finance to fulfil its role in the county; and if he will make a statement on the matter. [45518/18]

John Paul Phelan (Carlow-Kilkenny, Fine Gael)
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I assume the question refers to the Local Government (Funding) Baseline review, which has taken place largely in parallel with the review of Local Property Tax (LPT), led by the Department of Finance. Since the introduction of local retention of LPT in 2015, LPT allocations have replaced General Purpose Grants funding previously received by local authorities  from the Local Government Fund. 

The Local Government (Funding) Baseline review group was  established earlier this year and comprised representatives from my Department,  the City and County Management Association (CCMA) and the Association of Irish Local Government (AILG).  The terms of reference of the group were:

- To consider the broad range of general indicators and data sources, not linked to specific programmes, that could be applied across the local government sector to review baselines and guide the allocation of non-programme funding;

- To consider the rationale behind these indicators and whether appropriate to the local government sector;

- To recommend a set of indicators and associated data sources to inform the objective set out in bullet 1;

- To recommend a weighting that may attach to each indicator;

- To consider, insofar as possible, the existing sources of, and demands on, local authority non-programme income as part of this process;

- To consult widely with relevant stakeholders;

- To conclude this programme of work before end August 2018.

The findings and recommendations of the Review Group are currently under consideration in my Department.

As is the case with all other local authorities, Galway County Council were notified in July this year of their provisional 2019 LPT allocation amounting to  €14.5m, notwithstanding any subsequent local variation decision.  One of the aims of LPT was to enhance the financial autonomy of local authorities so as to bring about a greater connection between local expenditure and local revenue raising, thereby reducing reliance on central funding.  In this context, it is important to note that local authorities have the power to vary LPT rates locally by up to 15% and in such circumstances would retain all of the additional LPT generated from that decision. Any such local  LPT variation decisions  are a matter for the elected members of the authority to consider  in the context of the revenue raising tools available locally. Galway County Council decided not to vary the LPT rate for 2019. Accordingly, the 2019 LPT allocation will remain unchanged  at €14.5m.

Central Government funding of local government is a complex matter, with transfers coming from a wide range of Departments and Offices, not solely from my Department, for a variety of purposes. Some streams of funding are delivered directly from funding departments to local authorities, while others are routed through departmental agencies. Some elements of funding are project-specific, giving rise to changes in funding from one year to another, depending on a project's progression. The Comptroller and Auditor General (C&AG) reports on the Central Government funding of local authorities as part of his Annual Report, which provides an overview of the funds flowing from and through central government sources to local authorities and the purposes for which funds have been provided. The most recent report can be viewed at the following link:

In terms of funding for Galway County Council, across all schemes and funding sources, my Department has provided €31.6m in 2015, €33.5m in 2016, €33.7m in 2017 and €33.8m up to the end of October 2018. Notwithstanding this, I am cognisant of the financial pressures facing Galway County Council; my Department is currently in discussions with the local authority in this regard and I expect that these discussions will conclude shortly.