Vol. 474 No. 6
147 Mr. D. Ahern asked the Minister for the Environment the estimated net shortfall between the receipts from motor tax and the former mode of funding for the three local authorities in County Louth in relation to the proposed changes in local authority funding; and if he will make a statement on the matter. [3747/97]
The new system of local authority funding is based on assigning the proceeds of motor taxation to local authorities. The amount of this taxation collected by the different authorities will vary, in some cases significantly, from the income levels generated by the existing system — some authorities will collect considerably more and others considerably less. This requires a transfer of resources to ensure, as already stated, that every local authority, including those in County Louth, benefits from the changes.
Under the proposed equalisation system, local authorities will retain 80 per cent of the proceeds of motor tax on non-goods vehicles and contribute all other motor tax revenues to an equalisation fund. The resources of the fund will be distributed, in the first instance, to ensure that the income lost through the abolition of domestic water and sewerage charges and the rate support grant is made good in full to each local authority. The balance remaining will be allocated as equitably as possible among local authorities, having regard to needs and resources. All local authorities will gain from this new funding system.
