I propose to take Questions Nos. 45 and 46 together. The effect of the circular referred to by the Deputy is to replace the original domestic rate grant allocations notified to local authorities in December 1985 by an increased level of funding made up partly of a domestic rate grant allocation and partly of the additional benefit accruing to local authorities revenue accounts from the use of the proceeds of local authority house sales. In fact, the revised allocations notified show an increase of over 1.5 per cent on the original December 1985 figures. In the circumstances, I do not propose to withdraw the circular.
The revised allocations were based on information supplied both by telephone and otherwise by urban councils. However, the circular indicated that the revised allocations were provisional pending receipt of the specific information sought in the circular. I will of course review the provisional allocations on receipt of full information from all urban councils. For the purpose of local authority estimates, my Department have informed the manager for the urban councils in Mayo that it is in order for the local authorities to proceed on the basis of an increased allocation as indicated above.
In so far as the technical accounting matters raised by the Deputy are concerned, it is not my intention that the revised arrangements for rate support grants should in any way disturb the normal financial relationship between the county and the urban authorities and my Department have advised the manager of the Mayo urban councils of this. The county demand made by Mayo County Council on the urban authorities in the county during the prescribed estimates periods represents an estimate based on information available at the time the demand is made, refined as necessary by outturns of the actual produce of the rate in the local authorities concerned in the two previous years, calculated in accordance with the public bodies orders. I will in due course make any necessary amendments to the public bodies orders to enable the actual produce of the rate to be calculated for 1986 at the appropriate later stage.
