Pádraic McCormack (Galway West, Fine Gael)
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Question 3: To ask the Minister for the Environment, Heritage and Local Government his plans for the future funding of local government; when the Indecon report on local government finance will be published; and if he will make a statement on the matter. [36986/05]

Dick Roche (Wicklow, Fianna Fail)
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The new arrangements for financing local government, based around the local government fund which the Government introduced in 1999 have had a major positive effect on the finances of local authorities. The fund provides a buoyant and dedicated source of funding for local authorities to supplement the income they derive from other specific Government grants and from local sources such as commercial rates and charges for services.

A measure of the success of the new arrangements can be gauged from the general purpose grant allocations from the fund in 2005, which amount to some €817 million. These allocations are significantly greater than the equivalent figure in 1995 which was €240 million and the 1997 amount of €339 million. The 2005 allocation represents an increase of 8.7% over 2004 and an increase of 140% over 1997 allocations. In the case of the Deputy's constituency, for example, the allocations for Galway County Council have increased from €9.9 million in 1994 to €13 million in 1997 and to €32.6 million in 2005. This is an increase of almost 330% over the figure in 1994 when the Deputy opposite had more influence with the Minister of the day. I have therefore been kinder to Galway than he was.

The level of grant aid for non-national roads, which since 1999 receive funding from the local government fund, has also increased very significantly over recent years with 2005 allocations totalling €495 million compared to €139 million in 1994 and €225 million in 1997.

The recently published Abridged Estimates Volume provides for an Exchequer contribution to the fund of €518.575 million in 2006 which is a 6% increase over 2005 levels. Taken together with motor tax buoyancy, I am confident the general purpose grants which I will shortly notify to local authorities for 2006 will again make a significant contribution to meeting the increased costs of local authorities in the year ahead.

Additional information not given on the floor of the House.

This will enable them to provide a reasonable level of services without the need for any undue increases in commercial rates, fees and other charges.

Notwithstanding the success of the changes introduced in 1999, my predecessor commissioned a review of the funding of local government in light of developments in the economy and the evolving challenges facing the sector into the future. The main elements of the review, undertaken by Indecon International Economic Consultants in association with the Institute of Local Government Studies, were to project the income and expenditure of local authorities over the short and medium term, evaluate the existing method of funding the sector, examine potential alternative funding systems and identify the scope for efficiencies in the sector.

I received the Indecon report recently, and am currently considering its wide-ranging analysis and recommendations. I intend to bring the report to the attention of my colleagues in Government within the coming weeks and to publish it very shortly thereafter.

Pádraic McCormack (Galway West, Fine Gael)
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I thank the Minister for the information, most of which I did not seek. Will the Minister concede that this almost mythical report has been in construction for far too long and that he is using the delay as a comfort blanket? Does he agree the absence of the report is being used as an excuse for inaction? Does the Minister also agree that rather than wasting time and waiting for Indecon to come up with the goods, he would be better arguing more forcibly for a better slice of Exchequer funds for his Department, considering Exchequer funds are €1.5 billion more than the Government anticipated? Does the Minister not realise that local authorities are under-funded? Does he realise that a 6% rise in local government funding will not be enough to help councils meet all their commitments? Will the Minister inform the House how much money was collected nationally in development charges in 2004? Does he support the imposition of development charges of up to €7,000, €8,000 and even €10,000, on people trying to build their houses?

Dick Roche (Wicklow, Fianna Fail)
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"No" is the answer to those three supplementary questions. I do not agree with the Deputy that there has been anything improper or delayed about the publication of the Indecon report. The Deputy's fourth point was whether another report was needed. That is a good question and it could be the subject for a debate.

On the issue of the publication of the Indecon report, lest anybody thinks I am delaying it, I sought what was the precedent and I am following precisely the same arrangements as applied with the KPMG report in 1996, when the rainbow coalition was in Government.

I am interested in the question about local government and development levies because colleagues from Deputy McCormack's party in my county recently very significantly increased the development levies over what they had promised to people before the local elections, but that is a different issue.

The general point about the levies on which the Deputy touched was how much money is collected and how much money is in the kitty. That is a good question. I have already indicated that this year, before the councillors get into their estimates, I expect them to have those figures. There is a suggestion that there is approximately €400 million in levies collected and in accounts in the local authorities around the country. It is my view — I am sure it is Deputy McCormack's view — that whatever that figure, it should be available to councillors before they get into the estimates process. The lack of transparency in this area is not healthy and that is the point Deputy McCormack is making. I agree with him. I have suggested that this year that figure should be available.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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A brief question, Deputy McCormack.

Pádraic McCormack (Galway West, Fine Gael)
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From what the Minister stated, he agrees with development charges. I do not know whether we can believe anything the Minister states because he must be a house angel and a——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Deputy, do you have a brief question because we are running out of time?

Pádraic McCormack (Galway West, Fine Gael)
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Does the Minister acknowledge that in November 1992 he told Wicklow County Council that he would oppose the development levies of up to €7,500 in addition to other charges and that during the council the Minister pointed out that if any Minister for Finance attempted to introduce a tax imposition of up to €7,500 on new houses, he would not last long? Those were the Minister's words. Simply, I am asking the Minister——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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I ask the Minister to respond briefly.

Pádraic McCormack (Galway West, Fine Gael)
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——does he agree with development charges, or has he made an extraordinary conversion to development charges? If there is €400 million collected by——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Sorry, Deputy McCormack, I would ask you to give way to the Minister. Your colleagues in this House are complaining that their questions are not being reached. There are six minutes for each question. We have already gone over time on this question and I would ask you to allow the Minister a brief response.

Pádraic McCormack (Galway West, Fine Gael)
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I do not bother the Ceann Comhairle too often with questions.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Chair would like to give the Deputy all the time available——

Pádraic McCormack (Galway West, Fine Gael)
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Fair dues, a Cheann Comhairle. I accept the Chair's rules.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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——but his colleagues in this House are complaining about the length of time given to questions.

Pádraic McCormack (Galway West, Fine Gael)
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I would be delighted to hear whether the Minister is still in favour of development charges because he was not in November 2002.

Dick Roche (Wicklow, Fianna Fail)
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The Deputy obviously knows the answers as well as the questions.

Pádraic McCormack (Galway West, Fine Gael)
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Could the Minister state whether he will introduce property tax?

Dick Roche (Wicklow, Fianna Fail)
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First, the Deputy should read in depth what I stated.

Pádraic McCormack (Galway West, Fine Gael)
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I read it.

Dick Roche (Wicklow, Fianna Fail)
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No, he clearly did not.

Pádraic McCormack (Galway West, Fine Gael)
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I did and if I had time, I would quote it all.

Dick Roche (Wicklow, Fianna Fail)
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If the Deputy knows the answers as well as the questions, it is pointless coming in here asking questions. If he wants to hear the answers, what he should do is let me answer.

Pádraic McCormack (Galway West, Fine Gael)
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The Minister changes his mind so often I do not know what the answer is.

Dick Roche (Wicklow, Fianna Fail)
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The Deputy should hold on a second, that is ráiméis. Deputy McCormack knows as well as I know that since planning and development was a reality in this country there have been development charges. What I do not agree with is excessive development charges. What I do not agree with is councillors cutting — as Deputy McCormack's colleagues in Wicklow did last year before the local elections——

Pádraic McCormack (Galway West, Fine Gael)
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I am not in Wicklow.

Dick Roche (Wicklow, Fianna Fail)
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Deputy McCormack has colleagues in the Wicklow council. Before the Fine Gael members on the council went before the people of Wicklow, they made a big brouhaha of reducing the charges and last week they increased them. That is a local issue.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The time for this question has concluded.

Pádraic McCormack (Galway West, Fine Gael)
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That is what the Minister said. He stated he would not support it. That means Fianna Fáil and everybody else.

Dick Roche (Wicklow, Fianna Fail)
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The answer to Deputy McCormack's question is development charges are part and parcel of all this, and what I do not agree with is the kind of gouging out that has happened, particularly in one-off housing because of the activities of the Deputy's colleagues.

Pádraic McCormack (Galway West, Fine Gael)
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The Minister was caught out again, changing his mind.