asked the Minister for Finance how the amount provided in the 1987 Estimates for rates on Government property and contributions in lieu of rates has been reduced by two per cent; the factors which account for such a reduction; whether the reduced Estimate is based on a smaller number of properties; whether it takes account of any rise in the level of rates payable; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Rates on Government Property.
8.
As the Deputy knows, Government property is exempt from rates and these contributions are paid on an ex gratia basis. In the context of the 1987 Estimates, it was decided that expenditure under this heading would be maintained at roughly the 1986 level.
There has been a reduction in the amount of moneys paid by the State to local authorities in lieu of rates. Deputy Cullen asked for an explanation as to how less is being paid to local authorities in these circumstances. This is an increase in the liability of local authorities against all previous agreements. Does the Minister agree that we are not dealing with less property and that the Government have reneged on an obligation to compensate local authorities in respect of property which they occupy in their areas?
This subsidy is only one of many paid to local authorities. I should also like the Deputy to note that the State continues to pay rates on agricultural holdings, including forests, despite the fact that such rates were declared unconstitutional.