Vol. 483 No. 3
41 Ms McManus asked the Minister for the Environment and Local Government when it is intended to publish his proposals for local government funding; the arrangements, if any, which will be in place for 1998; when local authorities will be notified in this regard in view of the fact that councils are facing the deadline for the adoption of estimates; and if he will make a statement on the matter. [20187/97]
58 Mr. Timmins asked the Minister for the Environment and Local Government the proposals, if any, he has in connection with the capping of commercial rates as envisaged in An Action Programme for the Millennium; and if he will make a statement on the matter. [16314/97]
I propose to take Questions Nos. 41 and 58 together.
I am at present formulating a comprehensive package of measures relating to the funding of local authorities.
Legislation giving effect to these measures, which will start from 1 January 1999, will be brought before this House as soon as possible and will primarily enable the establishment of a local government fund.
In relation to 1998, the existing funding system, that is, the use of motor tax for general purposes, will remain in place. Local authorities were notified on 25 September 1997 of the minimum allocations they could expect in 1998 to facilitate them in considering their 1998 estimates. About half of all local authorities have, to date, adopted their estimates for 1998.
I propose to require local authorities, using existing legislative powers, to limit increases in rates in conjunction with the introduction of the new funding system. In the meantime I have requested local authorities, in preparing their 1998 estimates, to exercise restraint in relation to increases in rate poundages.
