Batt O'Keeffe (Cork South Central, Fianna Fail)

I thank all the Senators for their contributions to the debate and express my appreciation on what has been a useful and constructive exchange of views. While there will be some points of detail which will engage us as the Bill progresses, and on which we may sometimes have different perspectives, I welcome the generally positive reception from all sides of the House to the concept of the business improvement districts.

As well as the generally positive reaction in the House, I was heartened by the positive statements from the business community earlier this week when we published the Bill, and its wholehearted support for it. In that regard I want to join Senators Brady and O'Rourke in congratulating Mr. Tom Coffey and Mr. Paul McElearney of Dublin City Business Association for the Trojan work they have done in promoting the BID scheme concept here in Ireland.

As befits this House, the debate has given much food for thought and I will give serious consideration to the various issues raised and suggestions made. Different elements have been touched on, either by way of suggestion or seeking clarification. I would hope to deal these within the time allowed.

It is important to look at successful BID schemes. The results have been reflected in higher sales volumes in areas where they operate. Footfall levels have increased directly as a result of investment through BIDS. This is allied to the amount of time people stay in an area and the amount of money they spend in those areas has been dramatic.

Local government funding was raised by Senator Bannon and touched on by Senator O'Toole. Local authorities require sufficient funding to ensure that they can operate effectively. One success has been the ability of local government to respond to the ever-increasing demands made in recent years for improved services. These demands arise from the dramatic changes in Ireland in the last decade, such as the burgeoning population, unprecedented economic growth, higher incomes and expectations of services at local level. Local authority current expenditure amounted to €1.8 billion in 1997, when this Government came to power. This year, current expenditure by local government will amount to more than €4.1 billion. This increase in expenditure is underpinned by the funding that the Government has secured through the local government fund. General purpose grants to local authorities from the local government fund increased over this period from €340 million in 1997 to €875 million this year. This is a massive increase of 160% in the period. The unprecedented level of growth in general purpose grants far outstrips the level of growth in total local government current expenditure. This level of support, in addition to the significant investment through capital assistance for infrastructure, shows that this Government is firmly committed to financing local government.

For Senator Bannon's sake, I would like to look at Longford.