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Dáil Éireann díospóireacht -
Tuesday, 23 Jun 1992

Vol. 421 No. 4

Written Answers. - Local Government Funding.

Eric J. Byrne

Ceist:

24 Mr. Byrne asked the Minister for the Environment if he will outline the consideration which is being given by the Government to the future funding of local government; whether the Institute of Fiscal Studies has yet completed its study; and if he will further outline the options which are now under consideration by him.

Austin Currie

Ceist:

34 Mr. Currie asked the Minister for the Environment when he expects to receive the study he has commissioned from the Institute of Fiscal Studies on options for the distribution of the existing rates support grant with a view to achieving greater equity between local authorities.

Tom Enright

Ceist:

45 Mr. Enright asked the Minister for the Environment when he expects to receive the study he has commissioned from the Institute of Fiscal Studies on options for the distribution of the existing rates support grant with a view to achieving greater equity between local authorities.

Charles Flanagan

Ceist:

54 Mr. Flanagan asked the Minister for the Environment when he expects to receive the study he has commissioned from the Institute of Fiscal Studies on options for the distribution of the existing rates support grant with a view to achieving greater equity between local authorities.

Michael Joe Cosgrave

Ceist:

68 Mr. Cosgrave asked the Minister for the Environment when he expects to receive the study he has commissioned from the Institute of Fiscal Studies on options for the distribution of the existing rates support grant with a view to achieving greater equity between local authorities.

John Bruton

Ceist:

236 Mr. J. Bruton asked the Minister for the Environment when he expects to receive the study he has commissioned from the Institute of Fiscal Studies on options for the distribution of the existing rates support grant with a view to achieving greater equity between local authorities.

I propose to take Questions Nos. 24, 34, 45, 54, 68 and 236 together.

The report by the Institute of Fiscal Studies on rate support grant distribution was received in my Department on 11 May 1992 and published on 18 May 1992. The report has been sent to each local authority for their views and additional copies of the printed report are being sent to local authorities for distribution to elected representatives. Copies of the report have also been placed in the Oireachtas Library for the information of members.

The IFA report is a complex, technical one and any substantive comment by me on its proposals would obviously be inappropriate at this early stage. The report follows directly from the work of the Advisory Expert Committee on local government reform (the Barrington Committee) which arranged for a twophase study on the grant distribution process. A report on Phase 1 of the study was published last year as a supplement to the report of the Barrington Committee. The report now published sets out the results of Phase 2.

The report outlines equalisation models, based on various assumptions, which make it possible to compare the effects of a range of possible indicators for the distribution of the Rate Support Grant by reference to needs and resources. The report is based on the use of statistical techniques and their application to selected criteria.

Local authorities will wish to consider the IFS methodology for assessing needs, and their findings generally, and I will await their views before reaching any conclusions on the report. A number of grant distribution options have been examined in the study, and each of these suggests significant redistribution of the Rate Support Grant between authorities —some would stand to gain and others to lose. The implications have to be carefully examined before deciding on the feasibility and desirability of adopting one or other of the options suggested by IFS, or any other option of this kind.
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