Phil Hogan (Carlow-Kilkenny, Fine Gael)

A €10 transaction charge was also recommended by the local government efficiency review group to apply to all payments other than those made electronically. However, at this stage it is only proposed to apply the additional administrative charge to over-the-counter payments for the NPPR - the Deputies did not wait for the second or third sentence. Given the fact that some people may still not have access to electronic means of payment and the fact that broadband is not universally available, an electronic option may not be a realistic alternative to a postal payment for many people, particularly the elderly in rural areas. It is thus not proposed to apply the charge to payments made by post.

Deputies will be aware of the significant role which the Local Government Fund has played in the financing of local government since it was established in 1999. The fund has been financed from a combination of an Exchequer contribution and the full proceeds of motor taxation. Total funding for 2011 amounts to some €1.16 billion. The 2011 fund comprises an Exchequer contribution of €164 million and the proceeds of motor tax, projected at €998 million. Local authorities were allocated general purpose grants of €790 million in 2011, which represents approximately 29% of local authority current funding. Some €398 million was also provided from the Local Government Fund to the Minister for Transport, Tourism and Sport for the provision of roads and public transport infrastructure. As announced last week by my colleague, the Minister for Public Expenditure and Reform, Deputy Howlin, the Exchequer contribution to the Local Government Fund will cease this year and will be replaced by the proceeds of the household charge in 2012.

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