Vol. 477 No. 5
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Dáil Éireann debate - Tuesday, 15 Apr 1997
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Written Answers. - Local Government Funding.
32 Mr. Kenneally asked the Minister for the Environment the steps, if any, he will take to ensure that people who do not avail of a public water supply will not be subjected to an increase in motor taxation; and if he will make a statement on the matter. [4032/97]
The new funding arrangements for local government which I announced last December are based on assigning the proceeds of motor taxation to local authorities. This does not involve a new tax, rather a reassignment of the proceeds of an existing one at existing rates. There will be scope for local authorities, should they choose, to increase the national rates from next year on, by up to 6 per cent in total, should they wish to raise additional funds to finance local services generally.
The transfer of the proceeds of motor taxation, at existing rates, to local authorities is more than sufficient to allow the rate support grant to be replaced and charges for water and sewerage facilities supplied by local authorities to domestic dwellings to be abolished in 1997. There is no question, therefore, of subjecting anyone, whether in an urban or rural area, and whether or not they avail of a public water supply, to increased motor taxation to offset the abolition of these charges.
