Dáil Éireann debate -
Wednesday, 14 May 2003

Vol. 566 No. 4

Written Answers. - Local Authority Funding.

Eamon Gilmore

Question:

171 Mr. Gilmore asked the Minister for the Environment and Local Government the additional funding which will be made available to local authorities to allow them to meet their obligations under the benchmarking process; and if he will make a statement on the matter. [12947/03]

Minister for the Environment and Local Government (Mr. Cullen)

It is a matter for each local authority to determine its current expenditure levels in the context of its annual budgetary process. All such expenditure, whether this be on pay or otherwise, is funded from a variety of sources including specific State grants, commercial rates, rents, fees and charges for services and general purpose grants from the Local Government Fund.

The amount of funding made available to local authorities through the general purpose grants from the Local Government Fund has grown to record levels in recent years. I have allocated a total of €626 million for such grants in 2003. This amount represents an average increase of some 6.4% over the corresponding allocations for last year and is some 85% higher than the corresponding allocation for 1997.

In notifying local authorities of these allocations, it was made clear that they had been set at the maximum level possible having regard to the budgetary situation and that they were designed to provide reasonably for cost increases facing local authorities.

Further supplementation of the grants to local authorities is not possible in current circumstances, and it is a matter for local authorities to exercise prudent financial arrangement in relation to 2003 requirements.