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Dáil Éireann debate -
Tuesday, 4 Feb 2003

Vol. 560 No. 3

Written Answers. - Local Authority Funding.

Brendan Howlin

Question:

128 Mr. Howlin asked the Minister for the Environment and Local Government the proposals he has for the adequate funding of local government; and if he will make a statement on the matter. [2377/03]

Jim O'Keeffe

Question:

142 Mr. J. O'Keeffe asked the Minister for the Environment and Local Government if he accepts that funding arrangements for local authorities need to be urgently reviewed in view of the fact that huge additional local charges are now being imposed. [2306/03]

Paudge Connolly

Question:

169 Mr. Connolly asked the Minister for the Environment and Local Government if he is considering the introduction of a local poll-type community tax for the funding of local authorities. [2299/03]

I propose to take Questions Nos. 128, 142 and 169 together.

As I indicated in the reply to Priority Question No. 111 on today's Order Paper, significant additional funding has been allocated to local authorities from the local government fund over recent years. I am confident that the level of 2003 general purpose allocations from the fund, which on average represent increases of some 6.4% on 2002 allocations, together with increases in income from local sources, will be appropriate to meet the reasonable cost of local authority services this year. Looking to the medium term, I consider that a review of local authority funding is now timely. Much has changed in terms of the national economic situation, national taxation trends and the scale and nature of demands on local authorities since the last major review of local government funding was carried out.
I will shortly be inviting proposals from independent bodies to carry out an in-depth and broad ranging review which will assess the existing funding system and potential alternative systems. When this review is completed and I have had the opportunity to examine its results, I will be in a position to take decisions on the most appropriate arrangements for funding local government into the future. While the terms of reference of the review will leave this open to all viable options for improving the financing base of local government and will not directly exclude particular options, I have no reason to believe that a poll tax will commend itself in this context.
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