asked the Minister for the Environment if it is proposed to allocate additional moneys for road works to local authorities to offset the effect of the Value-Added Tax (Amendment) Act, 1978, operative from 1 March 1979.
Ceisteanna—Questions. - Road Work Moneys.
5.
I have allocated road grants totalling £47.9 millions to local authorities in the current year, representing an aggregate increase of more than 27 per cent over the allocations for 1978. In determining these grants, regard was had to the implications of the operation of the Value-Added Tax (Amendment) Act, 1978.
Would the Minister agree that it is rather ludicrous that when, having in his own right assessed fully the financial needs of all local authorities for the proper maintenance and improvement of our roads in the current year and having made the necessary allocation accordingly, we find that the Minister for Finance under the Value-Added Tax (Amendment) Act, 1978 can now retain a substantial amount of money which out of a grant of £1 million in my own local authority——
That is a separate question.
Does he not agree that that is giving it with one hand and taking it back with the other?
The question relates to additional moneys for roads.
Does the Minister not agree that this grant by the Minister for Finance of £100,000 for my local authority has had the ultimate effect of curtailing the planned road programme for the year and also employment in the local authority concerned?
I do not agree with the Deputy. A preliminary examination undertaken by the road works section in November 1977 revealed that the revised VAT arrangement would result in an increase of approximately 4 per cent in the cost of road works schemes. Grants allocated to local authorities in 1979 represent an average increase of 27.5 per cent over the 1978 amount. In the case of Deputy Ryan's constituency in Tipperary the allocations were increased by 14 per cent for Tipperary (North Riding) County Council and by 29 per cent for Tipperary (South Riding) County Council.
Would the Minister not agree that £100,000 out of £1 million is a 10 per cent cutback, not allowing for the wage agreement which we hope is about to be arranged?
This is argument. We move on to the next question.
This is a matter——
It is argument.
——about the work of local authorities. Surely we can ask the Minister concerned if he does not think that the 10 per cent cut is a substantial one.
The biggest increase ever was in respect of this year over last year.
That is not an answer.
Could the Minister state whether he is in receipt of any complaints and representations from local authorities relating to the cases such as that made by Deputy Ryan? Were representations made by local authorities in respect of moneys needed for necessary purposes this year? Is the Minister in receipt of any representations relating to that?
Not in reference to the question.
I beg to differ with the Minister. At a recent meeting of my local authority this matter was brought to the notice——
I am calling the next question.
It is a very unsatisfactory position.
Order, please.
Is the Minister aware of a statement made publicly by the Cork County Manager that the road allocation grant for this year would enable the council to carry out maintenance at only a very low standard? We have no road improvements because of the situation in relation to money.
I point out again to both sides of the House that this is developing a matter that does not arise from the original question. The question concerns grants for road works.
The question does relate to the entire employment programme of this Government. If, as Deputy Ryan suggests, moneys for local authorities are in short supply, employment locally will be affected. The Minister says he has received no such complaints. That is not the impression of Deputies on this side of the House. We are aware of complaints.
That is a statement.
It is a statement of fact.
There is an increase of 27 per cent this year over 1978 for roads.