Dáil Éireann Debate, Wednesday - 8 March 2006
209 Mr. Gilmore asked the Minister for the Environment, Heritage and Local Government the way in which he envisages local Government being properly resourced and funded to carry out all their responsibilities following the recommendations of the Indecon report. [9611/06]
Amharc ar fhreagra210 Mr. Sargent asked the Minister for the Environment, Heritage and Local Government his plans to address the predicted local authority funding shortfall identified by the Indecon report. [9774/06]
Amharc ar fhreagraI propose to take Questions Nos. 209 and 210 together.
On the basis of different methods of projecting expenditure, the consultants identify that by 2010, local authority expenditure will increase by €1 billion to €2 billion in nominal terms over 2004 levels. Funding for this expenditure will be met by a combination of the buoyancy in the existing funding system, some additional funding and the achievement of efficiencies and accountability over the period.
As regards the existing funding system, there is significant natural buoyancy in the current revenue sources of local authorities. For example, at local level, the valuation base is growing rapidly as a result of our continued economic growth. In addition, revenue from motor taxation, which is paid directly into the local government fund, continues to increase without any increases in the rates of this taxation. In 2006, the fund will amount to some €1.4 billion. I was in a position to announce record levels of general purpose grants to local authorities from the fund amounting to some €875 million for 2006. This was an increase of some 8% on the 2005 allocation and 160% of the 1997 level.
To supplement the existing income sources, a number of initiatives will be pursued. I am considering ways of bringing planning fees, which are fixed by regulation, into line with the economic cost of dealing with planning applications. I will introduce legislation to make commercial properties liable for rates from the date of valuation as opposed to the beginning of the following year. This will generate over €25 million extra per year. To boost income to the local government fund, I am tackling motor tax evasion and will be examining a system of continuous registration of vehicles. Additional revenues will be complemented by a range of efficiency initiatives. In partnership with local authorities, I propose to: examine the scope for greater sharing of services between authorities; develop a standard costing system for the sector to deliver enhanced management information, particularly with regard to unit costs; and develop proposals to enhance arrangements for local audit committees in line with best practice.
I am committed to ensuring that the value for money unit in my Department undertakes in-depth analyses of local authority activities and identifies best practice. The availability of good information is a key to good decision making and I have started a process of publishing key financial data on my Department's website. I have set aside €2 million this year for an innovation fund to identify ways of delivering further efficiencies and to disseminate best practice in this regard to local authorities. I will be announcing details of this during the year.
211 Mr. P. Breen asked the Minister for the Environment, Heritage and Local Government his views on whether the current infrastructural budget allocation guidelines are flawed due to the fact that they favour densely populated areas and fail to take account of the potential of low density zoned areas; whether this results in the collapse of thinly populated areas and discriminates against rural and remote areas such as many parts of County Clare; and if he will make a statement on the matter. [9649/06]
Amharc ar fhreagraThe current national development plan has seen a wide range of infrastructural investment throughout the country in roads, public transport, housing and environmental services, as well as health, child care and other services. The national spatial strategy published in 2002 aims to achieve more balanced regional development across the country in both urban and rural areas. The national spatial strategy envisages opportunities for all areas of the country to develop to their potential and will support a better balance of activity and development between areas experiencing congestion and areas that are economically under-utilised. The Government has already agreed that the regional dimension of the next national development plan for 2007 to 2013, which will consolidate and expand on investment under the current plan, will be broadly based on the national spatial strategy.
