Mr. Des Dowling:

It is a significant point. As the Deputy said, there are variations between the towns and the surrounding county and in part this is efficiency, but it is an indication also that this is where business often is located and where the rate base will be, and Dungarvan is a case in point. There is variation around the country in that in some cases the town rate is higher than the surrounding county rate. We have an opportunity in that regard, as the Secretary General stated. The Waterford group is kicking off, so to speak, tomorrow. I am going there to meet them as part of their first meeting and I will reinforce this point when I meet them.

The Deputy can take it that the ambition, and again this is in the context of a difficult financial position generally, would be to try to harmonise around the lower rate where that is possible. The Minister will be making allocations for next year very shortly but for last year, certainly in the Limerick case, the allocation was adjusted to try to ensure that Limerick City Council could bring down its rate closer to the county level.

Within the constraints of resources available to us we would seek to reinforce merger processes and the particular issue the Deputy raised is a very serious one which we will have to see how we can manage. It is not easy where there is a big gap between either a town or county or between a city and county that is merging but it is very necessary to do it. It is hinged against, first, retaining a significant funding base for supply of services but, second, supporting and encouraging business in the area concerned, and rates are a big element of that. We will certainly pursue that channel.