Local Authorities
Dail Éireann — 2021-10-21
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Malcolm Noonan (GP), Carlow-Kilkenny

I thank the Deputy for giving me the opportunity to outline the Government's supports for local authorities, with particular reference to Galway county. As the local authority budgetary period will shortly be under way, my Department has notified Galway County Council and all other local authorities of local property tax allocations for 2022 and of a separate allocation as a contribution towards the additional costs that will arise in 2022 as a consequence of the national pay agreements and the unwinding of the financial emergency measures in the public interest, FEMPI, legislation. The allocation in respect of Building Momentum - A New Public Service Agreement 2021-2022 is €4.44 million for Galway County Council and its objective is to reduce the cost of pay and pensions next year. In light of the Deputy's concerns about staffing, I trust it will be welcomed.
Turning to the funding position more generally, LPT was introduced to provide a stable and sustainable funding base for the local authority sector, helping to provide greater levels of connection between local revenue and associated expenditure decisions. LPT broadens the tax base by reducing the level of central funding required by local government. Local retention of the LPT began in 2015 and since then the overall principles and allocation methodology have broadly remained the same. Currently, 80% of LPT is retained in the area in which it is collected, with the other 20% supporting equalisation for local authorities with LPT bases lower than their funding baseline. The programme for Government, Our Shared Future, commits to bringing forward LPT reforms, including providing for all money collected locally to be retained within the county. This will also be done on the basis that those counties with a lower LPT base are adjusted via an annual national equalisation fund paid from the Exchequer, as is currently the case.
Across all schemes and funding sources my Department provided €51.1 million in 2019 and €82.9 million in 2020 to Galway County Council. The increase in 2020 was due to an increase in capital funding for housing as well as funding in respect of the Covid-19 commercial rates waiver and for additional expenses and lost income linked to the pandemic. Galway County Council also received a once-off allocation of €1 million for 2021.
This money was linked to the operation of municipal districts and was subject to a small number of requirements, including that the funding be divided equally among the municipal districts. My Department is currently reviewing correspondence issued by the council in respect of this funding to determine if each of the conditions have been complied with.

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Retrieved: 2026-08-14T04:49:44+00:00
Sitting date: 2021-10-21