Written answers

Thursday, 19 November 2020

Department of Housing, Planning, and Local Government

Local Authority Funding

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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160. To ask the Minister for Housing, Planning, and Local Government the additional funding that has been proposed to assist local authorities manage finances shortfalls in a post-Covid-19 environment and for the fiscal year 2021; when measures will be advised to local authorities; if consideration has been given to the current problems with local authority funding disadvantaging some local authorities; and if he will make a statement on the matter. [37501/20]

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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My Department has engaged extensively with representatives of the local government sector and the Department of Public Expenditure and Reform over recent months concerning the financial challenges facing local authorities as a consequence of the pandemic.

€600m was allocated by Government to fund the cost of a six-month waiver of rates from 27 March to 27 September 2020, which took the form of a credit in lieu of rates.  To strengthen this support, the Government subsequently announced an extension of the waiver until 27 December 2020, at an additional cost of €300m.  This brings to €900m the financial support to fund the cost of a waiver of commercial rates, which is an unprecedented measure that offers support to both businesses and to local authorities. 

The local authority budget process for 2021 is now underway. In that context, Minister O'Brien and I recently wrote to each local authority to advise that, in light of the fact that the future trajectory of Covid-19 is unclear, it is not currently possible for Government to make open-ended commitments in respect of commercial rates or other income pressures that may arise in 2021. However, as has been the case since the outset of the Covid-19 pandemic, my Department will continue to engage regularly and constructively with the local government sector and with individual local authorities on the financial impacts of the pandemic and other matters arising.

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