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Sam Boal/Photocall Ireland

Local government model and funding to "change considerably" this year

When Irish Water takes over water services, Minister Hogan said local authorities will have lower funding needs.

MINISTER FOR ENVIRONMENT, Community and Local Government Phil Hogan has said 2014 will see significant changes in the local government model and the way in which it is funded.

Starting this year, the Department of Finance will begin paying funds collected through the property tax into the Local Government Fund, which will then be allocated to local authorities to fund services. Before this, property tax money had been kept in the coffers, with Minister Michael Noonan saying it would be used to reduce the deficit.

“The local government funding model will change considerably in 2014,” Minister Hogan said in response to a parliamentary question.

In his question last month, Labour TD Kevin Humphreys asked for a comparison of 2013 general purpose grant allocations for local authorities but was told by the minister that this would be “inappropriate”.

Among the reasons involved is the fact that a large component of the cost base of each local authority, namely the operational cost of delivering water services, is transferring to Irish Water and therefore direct local authority funding needs are lower in 2014.

These grant allocations for this year have been made on a city and ‘county at large’ basis, whereas separate town council allocations were made in previous years.

Figures show that local authorities received some €71.25 million from an annual charge for residential properties which are not the owner’s only or main residence. 2013 was the final year of  operation for that charge and Hogan assured Humphreys that the general purpose grant allocations, despite the lower funding needs of local authorities this year, would take this into account.

Read: Dáil debates bill to deal with ‘crisis in Irish towns’>

Read: Local Government Fund expenditure estimated at €1.21bn this year>

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39 Comments
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    Mute D
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    Jan 3rd 2014, 8:29 AM

    I don’t believe a word out of Phil Hogans considerable mouth. It is a tax. Services will NOT improve. We were lied to regarding it’s allocation in 2014.
    God love us all when Irish Water gets going.
    He is a disgrace. An inept bully.

    143
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    Mute Owen Lynch
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    Jan 3rd 2014, 1:04 PM

    Kilkenny can be proud of this rogue.

    18
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    Mute the flying picket
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    Jan 3rd 2014, 9:03 AM

    Journal can you do a poll on the most hated politician in the dail .

    111
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    Mute richard fallon
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    Jan 3rd 2014, 9:58 PM

    there is something not right about that picture , if you look carefully you will just make out a poster saying “people first” just behind the fool, ???

    5
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    Mute ThomasFrancisMeagher
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    Jan 3rd 2014, 8:46 AM

    Looking at Phil Hogan’s fat ugly head has put me right off my breakfast. The posterboy for gombeen politics.

    109
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    Mute john g mcgrath
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    Jan 3rd 2014, 8:54 AM

    Agree and it’s only 3rd jan

    57
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    Mute Dane Tyghe
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    Jan 3rd 2014, 8:59 AM

    Wow tom. Of all the FF crooks that tried and failed to ruin the country, you somehow pick phil hogan as the father of gombeenism. Either you are incredibly ill informed or you are a FF or SF troll.

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    Mute Norman Hunter
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    Jan 3rd 2014, 9:29 AM

    Dane/Kevin, jaysus the irony of you calling anyone a troll.

    59
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    Mute gerbreen
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    Jan 3rd 2014, 10:24 AM

    The old comparison line again Dane. FF and FG are the remnants of a war over but is still destroying the country. Neither are fit for purpose.

    Each minister now just adds more taxes. Independent of each other. Not one looking at the big picture.

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    Mute Dane Tyghe
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    Jan 3rd 2014, 11:20 AM

    @gerbreen. Im just making the point that there are a lot more gombeen politicians in FF to pick from. Anyone who even glances at the state papers from 30 years ago can see the corruption and opportunism of haughy versus the integrity and patriotism of garret Fitzgerald.

    Oh and happy new year to u norman.

    3
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    Mute gerbreen
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    Jan 3rd 2014, 11:25 AM

    The same Garett that AIB wrote loans off for? Wonder what that cost us all.

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    Mute Norman Hunter
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    Jan 3rd 2014, 1:56 PM

    Same to you Dane/Kevin

    9
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    Mute Dane Tyghe
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    Jan 3rd 2014, 4:55 PM

    U really think I’m the same person as kevin?

    2
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    Mute Setrakian
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    Jan 3rd 2014, 8:28 AM

    I’m sorry but I recall a quaint old fund raiser called income tax that was supposed to cover costs for such things as water. This is privatisation of a resource which we have in abundance – another tax – another double / stealth tax. Anyone who has taken note of how well water privatisation has served people across Europe should be very concerned. Minister Hogan is scamming everyone of us on behalf of his cronies in govt who represent big private business interest. The Irish people are like lambs to the slaughter – again.

    109
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    Mute Billbond4
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    Jan 3rd 2014, 8:18 AM

    Yeah right of course that will happen, is motortax supposed to be allocated to councils too? Another big fat lie from our friendly government

    108
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    Mute Eon Barry
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    Jan 3rd 2014, 8:07 AM

    Well like anything else, when people are paying for something it had better be up to scratch infrastructure-wise. They better be out using the money to improve areas that have constant line breakages in cold weather due to poor/old materials. If we have to pay then both sides have a part of this deal to uphold.

    101
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    Mute Nigel O'Neill
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    Jan 3rd 2014, 12:51 PM

    Its all spin! Again! Take my home town of New Ross for example. They are getting rid of 9 councillors each at a cost of 4k pa..yet they are creating 5 new County Council positions for the New Ross area, each at a cost of 30k pa. You do the math!!!!!!!!

    29
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    Mute gerbreen
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    Jan 3rd 2014, 5:09 PM

    5 new for Wexford County?

    4
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    Mute Paul Rooney
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    Jan 3rd 2014, 9:53 AM

    When the next elections come both FG & Labour will tell us how they did not increase direct tax on work but LPT and water rates are taxes on our after tax income. At least an increase in the tax rate is honest this is cynical and just a con on the people. As for will the local councils see any of it, not a chance!

    51
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    Mute Pete Foley
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    Jan 3rd 2014, 10:56 AM

    U forgot USC

    36
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    Mute gerbreen
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    Jan 3rd 2014, 11:32 AM

    And pension grab, health insurance levy.

    37
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    Mute Sean Baylon
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    Jan 3rd 2014, 11:06 AM

    I’m stumped.. Can someone please explain to me where all our taxes go.. 6 years ago there was no USC, LPT or water charges and now the government have cut funding everywhere and still nothing has got better.. Our roads are a disgrace, our hospitals the brunt of a joke, our housing and rental situations non regulated allowing prices to rise and cowboy landlords to suck us dry this forcing us into mortgages we can’t afford to pay more taxes we can’t afford and if you get a decent paying job before you are 30 you may be able to afford health insurance without incurring a fine.. The country has been bled dry.. We need a cure, a real cure, not just new government but new people in the whole of the dail.. Do these people not realise we can’t afford it anymore.. F*ck me, is everyone else not as angry as me!!!

    41
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    Mute Patrick
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    Jan 3rd 2014, 11:21 AM

    Sean, you would not believe the amount of extra taxes the landlord has to pay ,the parties want you to believe that its the cowboy landlords but I assure you it’s not that , the regulations are extremely stringent , the government are discreetly increasing taxes every day for all of us they are squeezing the people dry.Multiple Property ownership is not the easy life as you would led to think.

    11
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    Mute richardmccarthy
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    Jan 3rd 2014, 2:13 PM

    A good start might be the €8.5 billion interest bill payable on the national bail out debt the country has to pay this year alone.

    11
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    Mute margaret
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    Jan 3rd 2014, 10:21 AM

    The Irish LPT payer should organise ourselves into one massive bloc. Refuse to pay en masse if money is not spent properly or if rates increased without our consent.

    33
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    Mute Philip Cooper
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    Jan 3rd 2014, 10:48 AM

    Or we could stop voting in idiots? Using elections.

    33
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    Mute Alan Lawlor
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    Jan 3rd 2014, 10:54 AM

    We are not one big bloc. The Revenue already has a tactic to combat this approach – by picking off each non-payer one by one.

    15
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    Mute Sandra Cahill
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    Jan 3rd 2014, 11:41 AM

    Phil Hogan is a numpty of the highest order! Bar his cronies, in Kilkenny the rest of us hate him. Doubt he ‘ll ever get elected again, thankfully. His house is regularly egged so I ‘ve heard. I ‘ll be taking the Ming approach when they try charge me for water, I ‘m not going to pay for a “service” that’s not fit for its purpose…I wouldn’t give my tap water to the dog it’s that bad!

    23
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    Mute Patrick
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    Jan 3rd 2014, 11:15 AM

    Just got Staggs local update in the letterbox today. According to that labour are doing a fantastic job at getting this country on its feet , positive illusion bias at its best methinks.

    21
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    Mute Dom Morgan
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    Jan 3rd 2014, 12:21 PM

    Mr Hogan is telling a fairy tale for small kids. We all know why local government received lot less than collected via ‘local’ property taxes. It is because the property taxes weren’t there to fund the local government to begin with but to plug the massive holes in the central government finances.

    21
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    Mute Dee4
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    Jan 3rd 2014, 11:19 AM

    This shower make Quisling seem like a patriot, why arent our taxes falling if we are paying directly for services? I didnt sign up to taxes are for Bond holders, but you pay directly for everything you use. We are on to triple taxation at this stage.

    21
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    Mute gerbreen
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    Jan 3rd 2014, 11:23 AM

    I see he appointed a Kilkenny coco to senior management at Irish Water.

    21
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    Mute Fergal McDonagh
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    Jan 3rd 2014, 1:18 PM

    I really hate Phil hogan. Despicable.

    15
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    Mute Brian Rochford
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    Jan 3rd 2014, 12:35 PM

    Wait until the new building regulations kick in in March. That domestic extension you may be thinking of ?
    All works of +40m2 will require the appointment of an Architect , Engineer or Surveyor who will have to produce a significant amount of design information before works start to be lodged with the local authority. This additional administration will require resources which the minister has not accounted for and I expect will require yet another fee / charge

    14
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    Mute gerryb
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    Jan 3rd 2014, 3:18 PM

    Hogan is a wank..!!!ripped the fire service to shreds in this country and made people pay for fires…what’s next 200 euro for a heart attack!only a while ago his brother fine for drink driven..very good breed alright!

    12
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    Mute COOM
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    Jan 3rd 2014, 1:24 PM

    He is counting down the days to his full pension. He and the rest of them are all laughing at us. Ha Ha bhaaa bhaaa.

    10
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    Mute richardmccarthy
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    Jan 3rd 2014, 9:31 AM

    Property tax,water charges,privatised waste desposal and public transport, unionised monopolys gone the way of the dodo, etc etc etc, in case you are not up to speed on such matters,its been like this in the UK for a while,welcome to the real world folks.

    6
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    Mute Scarr
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    Jan 3rd 2014, 9:38 AM

    So the uk is the model to follow is it? That’s the template? Right, so. *~*

    45
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    Mute MOD
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    Jan 3rd 2014, 11:44 AM

    A relative of mine pays 1400 sterling/ on water charges, they live in a 3 bed house

    4
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