Noel Ahern (Dublin North West, Fianna Fail)

A number of factors such as safer cars have contributed but it is also due to better and safer roads. In conclusion, I thank the Deputies who contributed to the debate which was wide-ranging and covered a number of issues and may have wandered off the point at times.

This Government attaches great importance to local government. It is important that issues relating to the system and funding of local government are well debated. We may not always agree on the solutions but it is good that local government is deemed not only relevant but also important. It is considered by all sides of the House to be one of the cornerstones of our democratic system. Many of us have come from the local authority system and many Members are experts on the system. I hope that will pertain in the future when there will not be as many Members with a background in local government.

I assure the House that the Government would not consider increasing any tax if it did not consider it as the correct thing to do. The increase in motor tax by 5%, no matter how unpopular that decision, was the right decision at the time. I do not wish to be flippant but we all know that money has to be earned, it does not come into the Exchequer easily. If we wish to improve our non-national roads network and support local government, then it is necessary to put in the resources.

It is interesting to hear Members speak of the need for funding of local government yet they object to this increase which was designed to give extra funding to local government. It is entirely appropriate that funding for non-national roads would be sourced from motor tax as opposed to general taxation. I hope the House will agree that it is a better system than that which pertained in previous times when motor tax was simply absorbed into the Central Fund for use by the Exchequer and was not allocated to local government or roads.

When introducing the Bill, the Minister of State said that motor tax receipts, together with an Exchequer contribution, are paid into the local government fund. The introduction of this arrangement led to a huge improvement in the level of resources available to local authorities, particularly for non-national roads. Any objective analysis of the funding system now in place for local government will find that it has been working very well in recent years.

Despite increased pressure on the public finances, this year's level of funding for the non-national road network is the highest in the history of the State. The Government is investing an average of €4,600 per kilometre on non-national roads in every county. This enormous level of investment is more than double what was spent in 1997. It represents an increase of some 10% on last year's allocation. Given that inflation is running at 1.8%, it is extraordinary that we can provide for an annual increase of 10%. I am pleased that the Government can provide an historic amount of money this year to continue its record of providing record levels of funding for the non-national road network. This achievement, which is considerable in the present economic and budgetary situation, has been helped by the fact that a financial resolution was passed last November.

The Government has introduced a new signage programme, which was demanded by Deputies Ring, Hayes and others during this debate. Some €5 million has been allocated to this programme for the current year.

Deputy Gilmore advocated that an annual report on the local government fund should be presented to the Dáil. I agree with him that there should be full disclosure and accountability in respect of the disbursement of all public funds, including the local government fund. The Deputy will be happy to learn that the presentation to both Houses of the annual accounts of the fund is required under section 3(5) of the Local Government Act 1998.

Certain Deputies spoke about variations in the level of roads grants. They claimed that some local authorities are receiving bigger increases on last year than others. The variations in grant allocations can be explained by reference to a number of factors. Although the total sum available for allocation is 10% greater than last year's allocation of €434 million, as I said earlier, the effects of certain grant streams, particularly those relating to the regional roads signposting programme and strategic non-national roads categories, mean that some local authorities will receive grant increases or decreases that are significantly different from the average. The grant category of "strategic non-national roads", which relates to support for housing and other developments, is available to a limited number of local authorities. This category may be responsible for skewing allocations and percentages for these local authorities, depending on the stage of approved schemes. It is in the nature of such schemes that allocations to local authorities tend to fluctuate from year to year, depending on the size and scale of individual projects. The fluctuations tend to be ironed out over a period of time.

Deputy Gilmore also spoke about the way in which non-national roads grants are allocated. I can inform him that block grants, including special block grants to urban authorities for footpath and carriageway restoration, are allocated on the basis of population. Special block grants have been paid to urban authorities, in addition to their ordinary block grants, for the last five years in recognition of the special needs of urban authorities. The special block grants must be used for restoration works on carriageways and footpaths and should ensure good driving and walking conditions in urban areas. The special grant supplements the block grant received by city, borough and town councils.

Deputies Hayes, Twomey, Ring and others questioned how local authorities spend their funding and their level of accountability. Local authorities are as accountable as all other public bodies. Given that local authorities are democratically elected, they can be said to be more accountable than many other public bodies. Those of us who have been involved in local authorities and have colleagues who are still members of local authorities know well — thank God for it — that officials are put under close scrutiny by councillors on these bodies. Local authorities publish annual accounts and are subject to audit by the independent local government audit service. They must publish a large number of performance indicators so that the public can assess their performances. It is worth noting that local authorities have introduced modern financial management systems, based on accrual accounting principles. As a result, local authorities are ahead of many other public bodies in terms of accountability and transparency.

A number of initiatives have been introduced to increase accountability and value for money since the Local Government Act was enacted in 2001. Local authority draft budgets must be considered by the authority's corporate policy group. Local authorities are empowered to establish local audit committees to review audit reports and accounts. I reject any suggestion that local authorities are not accountable, or do not show that they are delivering value for money. I do not know if it is appropriate for those of us who have queries to speak about individual problems in this House, given that the relevant officials can be placed under close scrutiny on these issues at individual local authority level. We may no longer have the right to conduct such scrutiny personally, but our party colleagues can certainly do so.

Deputy Ring suggested that the number of persons employed at local government level has increased in recent times. This is untrue, as the opposite is the case. Since the Government decided to reduce public service numbers, the number of persons employed in local authorities has decreased by approximately 1,000.

Deputy Ring also asked for information about spotlights on cars. Like some other issues that were raised during this debate by Members, it is now a matter for the Minister for Transport.

Deputy McCormack raised the question of tax reliefs for disabled drivers. A scheme of relief which is in existence provides for a range of tax reliefs in connection with the purchase and use of vehicles by qualifying disabled drivers, passengers and organisations involved in the transport of persons with qualifying disabilities. An interdepartmental review group chaired by the Department of Justice, Equality and Law Reform and including representatives of the Departments of Health and Children, Finance and Social and Family Affairs has presented its report on the scheme to the Minister for Finance. The report is being considered by the Minister, Deputy McCreevy, who is the responsible Minister in this area.

A few Deputies have suggested that motor tax which has been collected——

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