Brian O'Shea (Waterford, Labour)
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Question 568: To ask the Minister for the Environment, Heritage and Local Government further to Parliamentary Question No. 597 of 23 October 2007, if he will address the particular problem of Waterford County Council in regard to its low commercial rates base (details supplied); and if he will make a statement on the matter. [26347/07]

John Gormley (Dublin South East, Green Party)
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The income that each local authority generates from commercial rates is one of a number of factors taken into account in determining annual general purpose grants from the Local Government Fund. These grants are my Department's contribution towards meeting the cost to local authorities of providing an acceptable level of day-to-day services for their customers, a general purpose grant of €22.848m has been provided to Waterford County Council in 2007, representing some 32.3% of total budgeted expenditure. The Waterford grant increased by 10.8% in 2007 over 2006 and by 199% since 1997. These increases have outstripped the national average increases in general purpose grants of 8% and 179% in the same periods.

Local variations in expenditure and in income sources are an inherent feature of the local government system and take account of local circumstances and priorities and the decisions of democratically elected local authorities. Across the county and city councils, rates income as a percentage of total current expenditure varied from 6.3% to 45.6% in 2006. In the case of Waterford County Council, its rates base increased by 12.6% in the period 2005 to 2007, compared to an increase of 7.6% in Waterford City. This reflects an expansion in the rates base of the County relative to the City over this period. I am satisfied that the level of general purpose grant from the Local Government Fund notified to Waterford County Council for 2007, together with the income available to it from other sources, will enable it to provide an acceptable level of services for its customers.