Brendan Griffin (Kerry South, Fine Gael)
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Question 204: To ask the Minister for the Environment, Community and Local Government in view of the extraordinarily high rate multiplier being applied by Kerry County Council, which is by far the highest in the country by a county council, and the relatively high multipliers applied by Tralee and Killarney Town Councils, if he will review the level of funding being provided to Kerry County Council and Tralee and Killarney Town Councils in order to allow these councils to make a significant reduction in rates for business or if he will explore other options that would allow for reduced rates for business in these council areas; and if he will make a statement on the matter. [20560/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The levying and collection of rates are matters for each individual local authority. The Annual Rate on Valuation (ARV), which is applied to the valuation of each property to obtain the amount payable in rates, is decided by the elected members of each local authority in the annual budget and its determination is a reserved function of a local authority. However, I have urged local authorities to exercise restraint in setting the ARV in this and previous years and they have responded positively in this regard. In this context, both Kerry County Council and Tralee Town Council have not increased their ARVs since 2009 while Killarney Town Council has reduced its ARV in 2011 to a level below that which pertained in 2008. I recognise that these are difficult economic times for many businesses and I will continue to keep matters relating to commercial rates under regular consideration in my Department.

Significant levels of funding continue to be provided to local authorities by central government, including through General Purpose Grants from the Local Government Fund. In 2011, General Purpose Grants of €23,238,216 have been allocated by my Department to Kerry County Council, while €1,603,506 has been allocated to Killarney Town Council and €2,694,458 to Tralee Town Council. These grant allocations are determined having regard to a wide range of factors, including the overall level of funding available, the cost to each authority of providing a reasonable level of service, the income that should accrue to each authority from local services and specific grants and the need to ensure that each authority will receive a grant that will ensure financial stability in all local authorities.

These significant grant allocations have reduced the burden that would otherwise have fallen on local charges and commercial rates and have ensured that the funding needs of local authorities have been met in a balanced way. Other sources of local revenue include the non-principal private residence charge, housing rents, environmental and other waste charges and charges for non-domestic water services which, together with commercial rates, provide over half the current funding needs of local authorities. The balance of funding is provided through specific State Grants, the most important of which are local and regional road grants through the Department of Transport, Tourism and Sport.

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 to these local authorities through their general purpose grant payments, together with the income available from other sources, makes a significant contribution towards enabling the Councils to provide a reasonable level of services to the public. Unfortunately, and in light of the current financial situation, there is no additional grant funding available for these local authorities in 2011.