Dáil Éireann Debate, Thursday - 9 December 2004
11 Mr. Broughan asked the Minister for the Environment, Heritage and Local Government when he will announce the rates support grant for local authorities for 2005; the criteria he will use in determining the amount to be received by each local authority; and if he will make a statement on the matter. [32692/04]
View answer52 Mr. Crawford asked the Minister for the Environment, Heritage and Local Government if he has satisfied himself with the 1% increase in the local government fund as detailed in his Department’s Estimates; and if he will make a statement on the matter. [32774/04]
View answerI propose to take Questions Nos. 11 and 52 together.
I assume the questions refer to general purpose grant allocations from the local government fund for 2005. Earlier this week I notified all local authorities of their general purpose allocations, which will total €817 million for 2005. This represents an increase of 8.7% on average over the corresponding allocations for last year and is well ahead of the current rate of inflation. The 2005 allocations consist of a 7% increase across the board on the amount provided to each authority in 2004 and also an element for equalisation. Overall, the allocations represent an increase of well over twice the 1997 allocations.
In determining allocations for 2005, I had regard to the level of funding available to me for this purpose, the extra demands that different local authorities will have to meet in the year ahead and the capacity of authorities to generate income from local sources. I was also conscious of the need to provide extra financial assistance to financially weaker authorities. In this regard, €12 million was provided for equalisation.
I am satisfied that the general purpose allocations provide an appropriate contribution to meeting the increased costs faced by local authorities in 2005 and will allow them to frame reasonable balanced budgets without undue increases in local charges.
