asked the Minister for the Environment if he recognises the fact that the existing system of financing local authorities militates seriously against some existing authorities who either had a very low rate in the pound in 1977 and/or do not enjoy the same level of development of houses, factories etc., as other areas and are thus deprived of the financial buoyancy available to areas being developed more quickly; if so, the steps he proposes to take to avoid this discrimination as between local authorities; and if he will make a statement on the matter.
Written Answers. - Local Authority Financing.
249.
While some local authorities do enjoy high valuation buoyancy due to greater industrial and housing developments, there is often a corresponding increase in the demands on the services to be provided by the local authorities concerned to support those developments.
As announced in my Estimates statement on 12 May 1983 I am undertaking an examination of means to ensure the financial viability of the local government system for the medium and longer terms. In the meantime local authorities will have greater freedom and discretion in arranging their local finances in consequence of the removal of central control on rate poundage limits in the current year and of the wider charging powers provided for in the Local Government (Financial Provisions) (No. 2) Bill, 1983.