Dáil Éireann debate -
Tuesday, 16 Dec 1997

Vol. 485 No. 2

Written Answers. - Motor Taxation.

Brendan Howlin

Question:

253 Mr. Howlin asked the Minister for the Environment and Local Government the mechanism, if any, he used in 1997 to allocate the proceeds of motor taxation to each local authority; his views on whether the allocation to each local authority is an equitable share of available funds; and if he will make a statement on the matter. [22844/97]

Minister for the Environment and Local Government (Mr. Dempsey)

Allocations to date in 1997 to local authorities under the new funding system introduced earlier this year were calculated on the following basis:

Basis for Allocation

1. 1996 base Rate Support Grant increased by 2 per cent

plus

2. (a) 1996 Domestic Water and Sewerage Charges Warrant (including arrears but excluding waivers) increased by 2 per cent.

multiplied by

(b) the greater of:

(i) 1996 Collection Rate of Domestic Water and Sewerage Charges Warrant

or

(ii) Average per cent Collection Rate 1993-96 inclusive

increased by

(c) per cent increase in combined rate of domestic water and sewerage charge for 1997 over 1996.

plus

3. A fixed per cent of pre-1993 House Sales Schemes proceeds in 1996.

Local authorities were informed that these allocations would be received by them from a combination of rate support grant, retained motor tax income and equalisation fund payments.

Given that the main purpose in 1997 in allocating funds was to replace lost income, this has been achieved as fairly as possible through using this formula.