Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

Apologies, Deputy Stanley. I can read the response provided to the amendment. The need and resource model was developed in 2000 to assist in the determination of the allocation of general purpose grants to local authorities. The aim of the model is to bring about equalisation between local authorities over time so that each will have sufficient resources from a combination of central grants and local income to provide for a reasonable level of service. The model was first used to assist in determining a portion of the allocations for the local government fund in 2000 and was used after that each year until 2007.

The amount provided for equalisation amounted to €18 million in 2004, €12 million in 2005, €17 million in 2006 and €16 million in 2007. The amounts each year are consolidated into each local authority's baseline allocation for successive years, thus ensuring that progress is being made on a gradual basis to move local authorities towards a position of greater equity. Equalisation and general purpose allocations since 2008 are based on the pattern of equalisation established by that model. Local authorities had previously provided detailed annual returns and this action was very time consuming. This approach to equalisation from 2008 and subsequently was used to release key staff to work in other areas.

In 2012, 99% of the available general purpose grant was allocated on the basis of the adjustment to the baseline. The Minister, Deputy Hogan, allocated the balance of funding towards those authorities with acute financial positions, as evidenced from their annual financial statements or engagement with the Department, and in relation to costs associated with the provision of environmental infrastructure.

Equalisation remains a core principle and it will apply for 2012. While all local authority revenue sources are under pressure, we are reflecting the need to ensure that local authorities have the resources to provide a reasonable level of service. The Minister, Deputy Hogan, remains committed to the principle of equalisation. In the current difficult financial environment it is critical that the Government ensures as far as is possible that all citizens can expect a reasonable level of service provision from the local authority regardless of where they live.