Fergus O'Dowd (Louth, Fine Gael)

According to the Indecon report, €1.5 billion is required by 2010 to give local authorities the freedom to do the work they aspire to do. That funding will not be achieved unless the Government provides it. Deputy Ó Fearghaíl is correct; the Government has failed absolutely to support the local government fund. The 2% increase for local authorities is below the rate of inflation. The Government is engaged in doublespeak when it says that local authorities must increase taxation locally. Its purpose in saying this is to wash its hands of responsibility for local government funding.

It is inevitable that development and local charges will increase as a result of this deficiency in funding. I received a letter some days ago informing me that development charges in County Louth are to increase by more than 7%. Local government is being crucified by the Government. Local authorities are not being provided with sufficient funding even to keep pace with inflation. The Government is telling county councillors they must increase charges but is abdicating its own responsibility by failing to provide adequate funding.

Moreover, the Minister for the Environment, Heritage and Local Government, Deputy Roche, is failing to collect the tax that is due for local government. He has ignored a report which indicated that funding for local, regional and county roads is deficient. Some €50 million is needed to keep them in a safe state of repair but only €31 million was allocated last year.

It is unacceptable for the Government to speak out of two sides of its mouth in this way. The State has never been better off and the coffers never so full, yet never has so little been given to local government. The Government's policy in this regard is unacceptable and a charade. The reality is that the Minister for the Environment, Heritage and Local Government is not doing his job. I estimate that he is failing to collect €40 million per year that is due from car tax dodgers. He will make up his sums by letting these people off the hook and increasing motor tax.

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