Séamus Kirk (Louth, Fianna Fail)
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Question 211: To ask the Minister for the Environment, Heritage and Local Government the way the increases in the funding allocated to local authorities under the local government fund compare with the rate of inflation over the period since the Government entered office in 2002; and if he will make a statement on the matter. [7483/07]

Dick Roche (Wicklow, Fianna Fail)
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I have allocated record funding of some €948 million to local authorities for 2007 through general purpose grants from the Local Government Fund. This represents an increase of 8% over the record amount provided in 2006, and is well ahead of the projected level of inflation for the year. The 2007 funding represents an increase of 60% over the €592 million provided in 2002, and is substantially ahead of inflation of some 25% over the period January 2002 to December 2006.

Local authorities will spend in excess of €9 billion in 2007 between their current and capital programmes. General purpose grants are provided through the Local Government Fund which funds over 30% of local authorities' current spending. These grants are my Department's contribution to each local authority towards the cost of providing its day-to-day services.

The increased funding provided, together with the continued rates buoyancy from the greatly strengthened commercial base supported by the Government's successful economic policies, will enable local authorities to continue to improve the range and quality of services to their local and business communities.