Local government fund to be reduced

ENVIRONMENT: THE DEPARTMENT of the Environment will have almost €13 million more to spend next year.

ENVIRONMENT:THE DEPARTMENT of the Environment will have almost €13 million more to spend next year.

However, with huge demands on this department's resources, it is likely that many areas that fall within the department's remit will face substantial cuts.

The department is not only responsible for environmental measures but funds all local authorities.

The local government fund is almost certain to be reduced and councils have already been told to cut their payroll costs by 3 per cent.

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It is likely that the department will have to make an extraordinary injection of funds into areas usually managed directly by local authorities, such as social housing, which may swallow more than the €13 million increase.

There have been suggestions that the department may have to bail out Dublin City Council in relation to its social housing regeneration programmes.

The Construction Industry Federation (CIF) in its pre-budget submission suggested the Department of the Environment's Housing Finance Agency take a stake in the purchase of homes for first-time buyers, which would not be repaid for seven-10 years.

The department said last night that it would be making no comment on the figures until the budget was announced.

Olivia Kelly

Olivia Kelly

Olivia Kelly is Dublin Editor of The Irish Times