asked the Minister for Local Government if, in view of the Taoiseach's previous statements regarding the financing of local rates he will now make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Financing of Rates.
25.
In a speech on 21st March, 1965, the Taoiseach referred to the growing burden of local rates and said that the Government had set up a number of investigations and inquiries directed to (1) investigating the possibility of opening new sources of local revenue to reduce the rate charge; (2) the feasibility and consequences of transferring some further part of the expenditure now partially met by rates to the Exchequer; and (3) the justification for taking action at Government level to equalise the rate burden between different counties.
The Taoiseach warned, however, that there was no quick or easy solution to any of these problems, but he undertook, when all the necessary information had been collected and all the ideas submitted had been examined, to submit conclusions and proposals to the Dáil.
Steps to transfer an increased part of the cost of local services from rates to the Exchequer and positive proposals for equalising the rates burden as between different counties were made in the White Paper on the Health Services publised last January. As the cost of the services represent about 40 per cent of the total revenue expenditure of local authorities, the proposed changes should have a significant effect on local finance.
The stage has not yet been reached where comprehensive proposals for any further necessary changes in the system of local finance and taxation can be announced but considerable progress has been made with the investigations into these matters. The Deputy will be aware that a summarised version of the first interim report of the interdepartmental committee was published as a White Paper last October. That report dealt with the question of valuation for rating purposes, and in a foreword to the White Paper it was indicated that the Government had decided to make available to the public the summarised version of the committee's report in the belief that it would bring about a better understanding of how the valuation system works and evoke suggestions for the improvement of, or for practical alternatives to, the system.
I regret to say that, so far, very little comment has been evoked. The Government are still open to consider informed criticism of the report and suggestions for the improvement of, or for practical alternatives to, the valuation and rating system. A decision cannot, however, be postponed indefinitely.
Examination of other important aspects of local finance, including the possibility of providing alternative sources of local revenue, is continuing.
Can we expect to get any relief in the forthcoming Budget or can we expect a statement prior to the forthcoming local elections?
Can the Minister give me an undertaking that the citizens I represent and among whom he resides in Dublin North-East will not be unfairly treated when rates equalisation comes along?
In reply to Deputy Coughlan, the Budget will contain proposals in connection with changes outlined in health matters. Whatever has been promised there will be provided for in the matter of rates alleviation. In regard to a statement before the Budget or a statement of any final conclusion before the local elections, it would be foolhardy to make any such promise.
You can say that again.
It was given before the last election.
What was given?
A promise was given in Donegal.
If it has already been given, there is no need to give it again.