Dáil Éireann debate -
Thursday, 13 Dec 2001

Vol. 546 No. 5

Written Answers. - Rate Support Grants.

Richard Bruton

Question:

196 Mr. R. Bruton asked the Minister for the Environment and Local Government the value of the rate support grant which was introduced to replace rates on private residences, abolished in 1977; the index which has been used over the years to arrive at its current value; and the shortfall of its present value from the amount that would be payable to local authorities had it been indexed in accord with the annual rate struck by local authorities during the intervening years. [32279/01]

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

The total amount of rate support grant paid in 1978, the year of its introduction, amounted to 100.69 million, £79.3 million. The 2002 local government fund general purpose grant allocations of 593 million, £467 million, therefore represent an increase of almost 500% on the 1978 rate support grant allocation.

In reality, comparison with the 1978 selection is impracticable given the adjustments made to the structure of the rate support grant over the years, for example, in relation to the discontinuation of rates on agricultural land; the elimination of statutory demands on local authorities; the writing off of loan charges under the Local Loans Fund (Amendment) Act, 1987, etc. and fundamental changes in central funding in respect of discretionary local authority expenditure including, inter alia, the abolition of the rate support grant in 1997, and the significant funding now given to non-national roads.