Vol. 564 No. 1
109 Ms McManus asked the Minister for the Environment and Local Government his proposals for the adequate funding of local government; the terms of reference of the independent review of local government funding announced on 14 February 2003; the person by whom the review will be undertaken; when it is expected to be completed; and if he will make a statement on the matter. [8747/03]
The funding available to local authorities from local sources and from grants from my Department has increased greatly in recent years and this has enabled local government to improve the range and quality of its services to customers. Revenue spending by local authorities reached some €3.1 billion in 2002, an increase of 16% on the corresponding figure for 2001 and an increase of 68% on the outturn for 1997.
As I have previously indicated, while the present system of financing for local authorities has proved reasonably effective, it is appropriate to re-examine local government funding in view of changing demands on the local authority sector and also the developments in the economy since 1998. I intend therefore to have a wide ranging independent and thorough study of local government funding carried out. While the formal terms of reference for the study have yet to be finalised, I anticipate they will include the following issues: projections of likely expenditure and income requirements of local authorities in the medium term; review of the existing system of funding of local authorities and its potential to meet likely expenditure and income requirements; evaluation of the efficiency of the structure, organisation and service delivery of the current local government system; options for revised arrangements for funding local government including implementation strategies. The consultants to carry out the study will be appointed following an open competitive process and I anticipate that the consultants should then complete the study within 12 months.
