I assume the allocations referred to in the question are the general purpose grant allocations made from the local government fund.
I do not accept that these allocations are insufficient. It is a matter for each local authority to determine its own current expenditure levels for any year in the context of its annual budgetary process. All such expenditure, whether it be in relation to pay or otherwise, is funded from a variety of sources including specific State grants, commercial rates, fees and charges for services and general purpose grants from the local government fund.
The amount of funding made available to local authorities through the general purpose grants from the local government fund has grown to record levels over the past few years. I have allocated a total of €626 million for such grants in 2003. This amount represents an increase of 6.4% over the 2002 allocation and is some 85% higher than the corresponding allocation for 1997. I am confident that this level of funding, together with increases in income from local sources, is appropriate to meet the reasonable cost of local authority services in 2003.
Since its establishment, the local government fund has also been the primary source of funding for non-national roads and major improvements of this road network have been realised under this arrangement. In 2003, non-national road grants will amount to some €434 million, which represents an increase of over 92% on 1997.
The funding arrangements introduced through the local government fund in 1999 have therefore served local authorities reasonably well. However, with a view to further reform and improvement of the system, I intend to commission a major independent review of local government funding particularly to meet the challenges of local government into the future. I intend that this review will be broad ranging and will examine all practical options for financing local government.
In the meantime, I intend that allocations from the local government fund to local authorities will take into account both the costs facing authorities and the ability of authorities to meet such costs from local sources.