Vol. 475 No. 5
119 Mr. Dempsey asked the Minister for the Environment the mathematical basis and statistical analysis he applied when determining the 80 per cent rate of retention of the proposed equalisation fund for local authorities. [5274/97]
Determination of amounts to be paid into the proposed equalisation fund was made following consideration of each local authority's income from rate support grant and domestic water and sewerage charges, together with details of each licensing authority's motor tax income. Data from recent years were examined using a guiding principle that local authorities should retain the maximum amounts possible of motor tax income collected by them. Various percentage retention rates were considered. The retention rate of 80 per cent of motor tax income from cars and motor cycles was the optimum proportion to follow this principle. At the same time, I had to be conscious of the need to ensure sufficient resources in the equalisation fund to make good the rate support grant and domestic water and sewerage charges income foregone by all local authorities and also to share our equitably the buoyancy inherent in the new system.
