Seanad debates
Tuesday, 27 March 2012
Motor Vehicle (Duties and Licences) Bill 2012: Second Stage
We have had much discussion on the household charge. I am amazed at those at a high level in the media who do not know the purpose of the local government fund or how it is disbursed. The money from taxation goes into the local government fund and is part of the equalisation fund which is distributed to local authorities to provide the services. We have said consistently that areas of high population cannot have all the services while areas of low population are denuded of services. The fund helps ensure that funding is provided to areas along the western seaboard, the south and south east. While none of us supports taxation increases to any great extent, the Minister has been faced with the challenge of finding ways of increasing the income of his Department and making provision to deal with the large bill left to the country, and he has done a good job on this occasion. I hope the diversion of this tax from the local government fund to the Central Fund will be a once off measure. I ask the Minister to comment on that issue because there are practitioners in local government who are concerned this might become a trend rather than a once-off measure.
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