Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 104: To ask the Minister for the Environment, Heritage and Local Government if the 6% increase in the local government fund will be enough to allow local authorities to perform their functions; his views on whether local government is adequately funded; his further views on the level of commercial rates levied on businesses; and if he will make a statement on the matter. [36619/05]

Arthur Morgan (Louth, Sinn Fein)
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Question 508: To ask the Minister for the Environment, Heritage and Local Government if, in view of the current economic situation in Donegal, he will consider ring-fencing an additional €800,000 per year from the local government fund for Donegal County Council over the next three years. [36450/05]

Dick Roche (Wicklow, Fianna Fail)
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I propose to take Questions Nos. 104 and 508 together.

Income available to local authorities through the local government fund rose from €797 million in 1999 to €1.29 billion in 2005. I am satisfied that the funding I will make available to local authorities, including Donegal County Council, for 2006 through general purpose grants from the fund will make a significant contribution to meeting their increased costs in 2006 and enable them to provide a reasonable level of services while avoiding the need for any undue increases in commercial rates, fees and other charges. Buoyancy in the fund overall since 1999 has ensured that general purpose grants increased by more than double the level of increase in the annual rate on valuation and more than three times the cumulative rate of inflation. I intend to notify local authorities of their general purpose allocations for 2006 shortly.