Michael Brennan (Fianna Fail)

I welcome the Minister of State, Deputy Gallagher, and thank him for his contribution.

The income from motor taxation, which has paid directly into the local government fund since its establishment in 1998, is used for non-national roads and the general purposes of local authorities. In 2002, local authorities' current expenditure on the non-national roads programme was €3.2 billion and, in that year, the local government fund contributed €987 million, or 31%, of the financing of local authorities' spending on non-national roads.

The viability of local government is dependent on these funds to carry out its functions in an effective and efficient manner. To continue this work, the local government system will need extra resources this year. The national development plan provides an investment of €2.43 billion in the 2000-06 period, which would pay for some 90,500 kilometres of county roads. If we are serious about regional development, we must improve funding for non-national roads.

We have achieved a great deal since 1995. Many Opposition speakers referred to the state of the roads at that time, but anyone who was then a member of a local authority knows that the state of non-national roads was raised at every meeting. The non-national roads programme can stand alone in terms of what has been achieved in that six year period. In 1996 there were 47,000 kilometres of non-national roads in a bad state of repair. This has been reduced to 29,000 kilometres. In other words, 62% of those roads have been restored. That is a good achievement in that period of time. The new rates for motor tax and driving licences, an increase of 12%, will ensure local government is adequately financed to performs its functions and build on the great progress made in the last six years.