Willie Penrose (Longford-Westmeath, Labour)
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Question 393: To ask the Minister for the Environment, Heritage and Local Government if he will confirm having received correspondence from a person (details supplied); if he will take cognisance of the views expressed therein, and in particular the impact a decision by him would have if it was decided to apply uniform percentage reduction in the local government fund grant to all councils and the adverse impact that would have for smaller local authorities with a small rating basis; his views on whether such a proposal will mean an end to equalisation and a return to the age when people would have a significant level of services in some authorities contrasting with poor and very low level services in others; if he will ensure that same does not occur; and if he will make a statement on the matter. [37390/08]

John Gormley (Dublin South East, Green Party)
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My Department has received the correspondence referred to in the question. General purpose grants from the Local Government Fund are provided to supplement the income available to local authorities from local sources and from specific grants to enable them to provide an acceptable level of day to day services. Local variations in expenditure and in income sources are an inherent feature of the local government system and reflect local circumstances and priorities and the decisions of local authorities.

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. For the purposes of allocations, a range of factors is taken into account, including each local authority's expenditure on, and income from, each service, the overall amount of funding available for distribution and the need to provide each local authority with a reasonable allocation towards achieving an acceptable level of services for its customers. 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.

It is a matter for each local authority to determine its own spending priorities in the context of the annual budgetary process having regard to locally identified needs. I am satisfied that the level of funding provided through general purpose grants makes a significant contribution towards enabling all local authorities to provide a reasonable level of services to the public. Longford County Council's general purpose grant allocation for 2009 is €14,587,948. General purpose grants to Longford County Council have increased by some 243% since 1997, which is more than a third higher than the average increase to local authorities over that period.