Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

-----if only because I find it quite boring to read. In recent years the local government fund, LGF, was funded principally by motor taxation and local property tax, which is collected by the Revenue Commissioners. A payment has also been made to the fund from the Department's Vote. However, the main payments from the fund have been to local authorities, Irish Water, the Department of Transport, Tourism and Sport as well as the Exchequer. In tandem with Irish Water funding moving from the local government fund to the Vote in 2018, we are also proceeding with other changes to the fund which aim to return it more fully to its original purpose of funding local authorities and to end circular flows of funds that had built up over the years. That means that from this year motor tax receipts will go directly to the Exchequer, payments in respect of road and public transport infrastructure previously met from the LGF will now be met from the Vote of the Department of Transport, Tourism and Sport and there will be no further requirement for a payment from the LGF to the Exchequer.

This allows for a funding stream into Irish Water without any circular transactions. It also means the local government fund is a more direct payment into local government.