Sorca Clarke (Longford-Westmeath, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

1180.To ask the Minister for Housing, Planning, and Local Government the losses in rates Longford County Council suffered year-on-year upon the closure of the Lanesborough power station; and if he will make a statement on the matter. [33370/24]

Alan Dillon (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation list prepared by Tailte éireann under the Valuation Acts 2001 to 2022. Tailte éireann has independent responsibility for all valuation matters, except appeals of valuation procedures set out under the Valuation Acts which come under the remit of an independent Valuation Tribunal.

Just transition is integral to the Government's climate action plan, and Government is committed to supporting communities transitioning to a low-carbon economy. However, the Government acknowledges that the closure of power plants has a serious impact on the local economy.

It is a matter for Longford County Council to levy and collect commercial rates and to report rates income in Appendix 7 of their Annual Financial Statement. The Council informed my Department that at the time of the closure of the Lough Ree Power Plant in Lanesboro in late 2020, the ESB were paying rates of €1,250,500. As a result of the closure, Longford County Council also lost rates from Bord na Mona valued €17,014 and rates from a number of smaller ancillary business.

To alleviate the impact of the closure of Lough Ree power station on Longford County Council's rate income my Department has provided from the Local Government Fund compensatory funding at a cost of €1.4m in 2021 and €1.3m in 2022, 2023 and again this year.

Allocations from the Local Government Fund can only be confirmed annually, as part of the Estimates process, however, it is intended that a similar allocation be sought in the Estimates for 2025 and 2026.

The purpose of this interim funding is to alleviate the unexpected loss of commercial rates in the period to the end of 2026, in line with the recommendations of the Just Transition Commissioner. My Department will continue to engage with Longford County Council in this regard.