James Bannon (Longford-Westmeath, Fine Gael)
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Question 509: To ask the Minister for the Environment, Heritage and Local Government if he will reiterate the commitment of his Department towards the policy of equalisation, which has existed for the past ten years in the local government fund grant applications; and if he will make a statement on the matter. [10116/08]

John Gormley (Dublin South East, Green Party)
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General purpose grants from the Local Government Fund are structured to bring about equalisation, over time, so that each authority will have sufficient resources, either from central grants or from its local income base, to provide an acceptable level of day to day services to its customers. In determining these grants I take into account a number of factors including the overall funding available for this purpose, the estimated cost to each authority of providing an acceptable level of day to day services to their customers, the income each authority should generate from local sources and the necessity to provide each authority with a baseline allocation that will ensure financial stability.

The Needs and Resources Model has been used in determining these grants since the year 2000. While the Model has been refined and adjusted since it was introduced, there have been a number of significant changes to local authorities' expenditure and income patterns and financial systems over this period. It is intended, therefore, that my Department, in partnership with local authorities, will carry out a review of equalisation with the objective of developing a replacement model to carry the process forward. This review will start later this year.