Vol. 572 No. 5
38 Ms O'Sullivan asked the Minister for the Environment Heritage and Local Government the proposals he has for the adequate funding of local government; when he expects to finalise the terms of reference of the independent review of local government funding announced on 14 February 2003; the person by whom the review will be undertaken; when it is expected to be completed; and if he will make a statement on the matter. [23603/03]
The system of funding put in place under the Local Government Act 1998 involved the establishment of the local government fund which contributes to the current funding needs of local authorities and provides grants towards non-national roads. This year I provided some €626 million in general purpose allocations to local authorities and €434 million for non-national roads grants. The general purpose allocations represent an increase of some 84% on the corresponding allocation for 1997. The 2003 non-national road grants of €434 million represent an increase of over 92% on 1997.
While the funding arrangements introduced through the local government fund have served local authorities reasonably well, I have decided in light of changes in the economy since 1998 and the increasing demands on local government to commission a major independent review of local government funding. Applications have therefore been invited from consultants wishing to undertake the work and I have arranged for copies of the request for proposals, including the terms of reference for the study, to be placed in the Oireachtas Library. The closing date for receipt of proposals is 7 November 2003 after which consultants will be appointed as soon as possible. It is anticipated that the review will take about a year to complete.
