Paddy Burke (Fine Gael) | Oireachtas source

I welcome the cost-of-living measures in the budget. They are very welcome at this difficult time for hard-pressed consumers and families. I also welcome the reduction in VAT for the media.This issue has been raised on several occasions in this House by various Members over recent years. The measure is very welcome, particularly for local media, which provide a great service throughout the country.

I ask that the Leader arrange a debate at some stage with the Minister responsible for housing on funding for local authorities. Some local authorities are at crisis point. They need matching funds for various projects proposed by the Government and Government-funded projects. The matching funds required usually amount to about 20%. On foot of the proposed pay agreement, local authorities will have to find 20% of the increase. Energy costs must also be considered because they have gone way up. My local authority, Mayo County Council, has got to find €3.5 million to cover the proposed energy costs and the cost of the proposed pay deal. That is just to stand still. I welcome the fact that there has been an allocation in the budget today for local authorities – it could be €50 million. However, in addition to the funding needs I have mentioned, local authorities have a considerable number of projects they have to co-fund. They have to find local funding in this regard. There are not many ways in which local authorities can raise funds now. They do not have fees to collect in respect of water, sewerage or refuse. There are very few means by which local authorities can gather money other than the local property tax. In many cases, because of the raising of the bands, the amount of money local authorities are collecting through that tax has gone down. Given the loss of money in this and other areas, many of them could be in very serious financial difficulty. We should have an early discussion with the Minister for Housing, Local Government and Heritage on the future funding of local authorities.