Dick Roche (Wicklow, Fianna Fail)

In 1994, when the Deputy's party was in Government, it allocated €236 million. I acknowledge that this had increased significantly by 1997 to €339 million and it has increased even more significantly to €875 million in 2006. While one cannot project exactly what the figures will be, if the trend continues, significant amounts of money will be involved.

On a number of the specific issues, there has been significant buoyancy in local authority funding, particularly as a result of the increase in commercial rates to local authorities, even without increasing rates. This year, local authorities achieved wonderful things by coming in at approximately 4% — in fact, rates were cut in Limerick city. This efficiency can drive the agenda much more than has been the case in the past. We must squeeze more value for money out of the funding to local authorities. This year, local authorities will spend in the order of €9 billion. If we can get just 1% efficiency out of it, it will be the equivalent of another €90 million. If we can get 10%, it would meet that whole issue.

There are aspects of the report which I do not intend to pursue. I have been up-front about this because I do not believe one can fund local government by levying a penalty on people who have holiday homes in Galway, Wexford, Wicklow or wherever. I do not think that would be a logical decision, nor do I intend introducing new taxes such as rates or stamp duty. However, if there is more efficiency and if we see the kind of growth that we have had, we will meet the difference projected by Indecon.

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