Local authorities fund their expenditure, including expenditure on pay, from a number of sources. These include specific State grants, commercial rates, rents, fees and charges for services and general purpose grants from the local government fund. Local authorities deal with pay costs, including benchmarking, like current expenditure demands through their annual budgetary process.
Over recent years the funding from the local government fund was increased significantly. Some €752 million was allocated in general purpose grants in 2004. It represents an increase of 14% over the corresponding allocation for last year and is almost 121% higher than 1997.
I am satisfied that the level of funding being provided to local authorities through general purpose grants will make an appropriate contribution to meeting local authority current costs in 2004.