Written answers

Tuesday, 27 May 2008

Department of Environment, Heritage and Local Government

Local Authority Funding

9:00 pm

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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Question 127: 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 application, as Longford County Council is very concerned at the small allocation towards equalisation measures in the local government fund grant allocation for 2008 (details supplied); and if he will make a statement on the matter. [15765/08]

Photo of John GormleyJohn 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 the Model will be kept under review with a view to maintaining the process of equalisation.

Longford County Council's general purpose allocation for 2008 is €15,522,985, an increase of 5.91% over the 2007 allocation. General purpose grants to Longford County Council have increased by some 265% since 1997, which is more than a third higher than the average increase to local authorities over that period.

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