Dáil Éireann debate -
Tuesday, 3 Feb 1998

Vol. 486 No. 3

Written Answers. - Local Government Funding.

Michael Ferris

Question:

88 Mr. Ferris asked the Minister for the Environment and Local Government his views on whether his decision to cap local authorities' power to set a commercial rate is a serious erosion of local authorities' power; and if he will make a statement on the matter. [2450/98]

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

As part of the new funding package for local government which I announced last month, I intend to take steps to cap rates on commercial property with effect from 1 January next year when the new funding package will come into operation.

I am at present considering various options on capping rates and I will announce specific details of the proposal later this year in plenty of time before local authorities adopt their estimates for 1999. The proposal will be designed to ensure that the rate demand on the business sector is neither excessive nor disproportionate to other sectors of society. The increased resources which the new funding system will deliver will facilitate this measure.

Overall, the new funding package will substantially enhance the autonomy and discretion of local authorities by putting greater funding at their disposal.