James Bannon (Longford-Westmeath, Fine Gael)

Harsh measures by the Government did not affect State or foreign cars but rather private bus operators who had to comply with an EU directive which removed the excise duty on fuel used by this sector. This was an appalling blow to rural communities which do not have access to regular pubic transport. The Minister, Deputy Gormley, was to address this issue but has failed to do so. This measure has threatened the livelihoods of many bus operators and added to the problem of an already dismal transport situation. It would serve the Government better to provide an efficient, joined-up public transport system to discourage private car dependency and further reduce CO2 emissions.

The rebalancing of car tax is a small step towards fulfilling our obligations on CO2 emissions. However, only the provision of a fully comprehensive transport system including, and highlighting, electric powered vehicles, which will hopefully be more ambitious than the Government's feeble projection of 10% by 2010, will reduce Ireland's spiralling carbon emissions in the transport sector. I would like assurances from the Minister that the full amount generated by the new motor taxation rates will be paid into the local government fund. In his speech the Minister mentioned €40 million. I want to see that going directly to the cash-starved local authorities around the country. Given the cutbacks in local authority funding and the regional infrastructural deficits, particularly in the midlands, such an assurance is imperative. Fine Gael is willing to support any measure designed to improve our environment. This Bill goes some way towards doing that and is to be welcomed in the environmental context.

In the Minister's speech he said local authorities receive income from a range of sources including rates, charges, goods and services. He concentrated two pages of his speech on the local government issue. Under the Minister's watch there have been drastic cutbacks on local authorities around the country. We all know local authorities are an essential element in any democratic state. They are the vehicle through which very important services are provided. Every day we see the services they provide under the various headings, but there have been drastic cutbacks.

The smaller counties in the midlands and west have been badly hit because they do not have the same rate base as the counties on the east coast. The Minister must do something to address this situation. In my county, Longford, the rate base for business is approximately 9% compared to 66% or 67% on the east coast. This is unfair on those smaller local authorities. The Minister has drastically cut back on the local government fund and I am disappointed in him. He must have been a very weak link at the Cabinet table to have allowed that. We all know the aim of local government is to provide for all kinds of development. Local authorities around the country talk to chairmen and managers and they are all cash starved.

The Minister said local government must play its part in the difficult period ahead. Local government has always played its part in the delivery of services and has always been responsible when there was plenty of money and will be responsible in difficult times. I do not want any slur to be cast on local government around the country and the way the authorities deliver their services. It is not an excuse for the Minister to fail to give them adequate funding. He is forcing local authorities around the country to cut services because he was the very weak link at the Cabinet table. He failed to get a fair slice of the cake for local government and I want him to address that.

Of the €40 million extra, will local authorities receive additional funding to provide the services on which there will be a shortfall? There is a serious funding shortfall in local authorities. Services such as public lighting will have to be cut in certain towns and villages throughout our country. There is a major deficit in the roll-out of group water schemes and sewerage schemes etc. If those schemes were put in place they would help the environment. I would appreciate if the Minister would address those situations. Coming from the Green Party there is much annoyance with his performance as Minister for the Environment, Heritage and Local Government.

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