Vol. 519 No. 5
67 Mr. Deasy asked the Minister for Finance if he will make a certain percentage of either direct or indirect taxes available to local and regional authorities to allow them deal with specific issues such as housing, open spaces and the environment. [14252/00]
A major review of local government financing was carried out in recent years. In the course of that review a range of options for funding local authorities was considered. This culminated in the establishment of the local government fund in 1999 which put local government finance on a new footing and resulted in a significant increase in local government resources. The receipts of motor taxation are paid into this fund. In 1999 those receipts totalled some £357 million. In addition to motor tax receipts, the Exchequer also makes a contribution to the fund, totalling £270 million in 1999 and £285 million in 2000. Local authorities also have other direct sources of revenue, in particular commercial rates which provided an estimated £412 million in 1999.
The Exchequer also provides significant direct funding to local authorities and the regional authorities for specific programmes such as housing, roads, water and waste water services. The National Development Plan 2000-06 provides for very substantial investment programmes in these areas.
In the light of this, I see no reason for any further change in the method of funding local authorities at this time.
