Dick Roche (Wicklow, Fianna Fail)

I remind the Senator that 1997 is not that far in the past. The figure for 2006 is far in excess of the rate of inflation and the Government's year-on-year increase in funds allocated to local authorities has been far ahead of the Opposition's when it controlled the public purse.

In my meeting today with the Chambers of Commerce of Ireland, I pointed out that commercial rates increased by an average of 4.5% in 2006. This compares favourably with the 12% average increase which businesses in Northern Ireland are facing this year. In addition to general purpose grants, my Department and others give grants to local authorities for specific purposes, including the improvement and maintenance of non-national roads. Such specific grants provide some 23% of local authorities' current funding needs. It is a fact that the proportion of local government budget which is funded directly from the Exchequer has increased in excess of rates. However, Senator Bannon does not like to deal in facts but prefers mythology, bullying and shouting. The reality is that logic, which is alien to the Senator, will show there has been an increase.