Ms Jackie Maguire:

The introduction of a property tax is broadly welcomed as it will put local government on a much more sound footing in terms of funding. There have been many reports in recent decades on the funding of local government, how it has evolved and the issues it poses. Currently we are funded through the local government fund. It is the intention that the property tax will replace that fund. In fact, there are no additional moneys. The property tax is a replacement of the current fund, which is composed of motor tax receipts and a sum of money from the Exchequer. The amount from the Exchequer was replaced in previous years by funding taken from the household charge. The intention is to replace the Exchequer funding with the local property tax. It is the intention in the reform document to have an element of that decided upon at local level. That will be introduced in the future. We welcome it, as it will provide more accountability and there will be more connection in the public mind between local funding and the services that are provided locally. That is something that was missed in recent decades. When funding comes from a central source there is a detachment among the local community. It is helpful for people to be able to say that the money is collected locally, we are paying it locally and it is providing our services locally. At the moment it is true that there will be no additional funding. When we arrive at a stage at which the amount collected locally from the property tax will be kept locally, there will always have to be a level of equalisation within that model, particularly for the rural counties. How that is established remains to be seen.