Vol. 483 No. 3
29 Mr. Howlin asked the Minister for the Environment and Local Government the plans, if any, he has to fund local government; whether the fund established under the Local Government (Financial Provisions) Act, 1997 will be devoted entirely to local authorities; whether the special allocation for non-national roads will continue in addition to this fund; and if he will make a statement on the matter. [20453/97]
I am finalising the formulation of 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 the House as soon as possible and will primarily enable the establishment of a local government fund.
In relation to 1998, the existing funding system, involving the use of motor tax for general purposes, will remain in place. Other than the expenses of the Minister for the Environment and Local Government in connection with the collection of motor taxation, the Local Government (Equalisation) Fund established under the Local Government (Financial Provision) Act, 1997, will continue to be devoted to local authorities in 1998.
The special restoration programme for non-national roads will also continue to be funded through my Department's Vote next year.
The Minister's reply is remarkably similar to the reply he gave on 14 October and to his statement on coming to office in July. However, we have not seen the colour of the Minister's money. We have not seen the proposals he was to bring in to fund local authorities. Where are we now in relation to a ring-fenced percentage of national taxation? That has not been mentioned. What taxation measures are envisaged, or is that discussion now abandoned?
Does the Minister accept the funding regime put in place by his predecessor will be utilised at least for next year and not pretend that a major new funding system is under way because local authorities are confused?
I visited many local authorities and I did not detect any confusion. The basis on which they would decide their estimates for 1998 was made clear to them in September. The reason my reply today is remarkably similar to previous statements is that I am consistent.
Where is the ring-fencing of taxation?
The Deputy must be patient for a little longer. He will get the same notice about the new system I got when he announced the system he put in place last December.
There are legislative measures now in place.
A question, please, Deputy Howlin.
I will put my question in context.
The Minister has repeatedly promised this House that legislation would be introduced before Christmas. He is now saying a new funding system will be put in place from 1 January. Is he promising that the new legislation will be passed by both Houses by 1 January?
I am not making that promise. I said that legislation giving effect to the new measures which involve the local government fund which will begin on 1 January 1999 will be introduced in the House as soon as possible.
Will the Minister accept the system he sought to disparage by likening it to local government being towed behind the family car is the system he will preside over during 1998?
Unfortunately, I must operate under the system I disparaged and will continue to disparage.
It took Deputy Howlin two and a half years to introduce the legislation.
It took Deputy Howlin two and a half years to produce a document which was designed to get him out of trouble and to keep his colleague on the back benches, Deputy Joe Higgins, out of the House, but he was elected.
The Minister, without interruption.
I intend to ensure a proper system of local government funding is put in place. It took the Deputy two and a half years to introduce legislation when he was Minister.
I intend to put in place a system of funding for local government which will be superior to the system introduced by Deputy Howlin. It will be ring-fenced, buoyant and will give local authorities more money than Deputy Howlin's system. I will be delighted to inform the Deputy of these matters when they are finalised.
If the Minister lives long enough.
