asked the Minister for the Environment if he is satisfied that the contents of a circular letter of 8 December 1978 to local authorities do not restrict the traditional freedoms of local authorities and their ability to respond sensitively to local needs.

I regard the upper limit of 10 per cent in increases in rate poundages allowed for 1979 as providing a fair alignment between local authority programmes and national economic policies for the current year. Within the upper limit, local authorities are free to determine their overall level of expenditure and their priorities as between their different programmes. The formula allows local authorities the benefit of all new and increased valuations occurring in their areas and is thus adapted to variations in the pace of development from place to place.

Does the Minister accept that the imposition for the first time ever of an upper limit on expenditure in accordance with the circular referred to in the question which says: "The Minister has directed that 10 per cent shall be the maximum amount by which the aggregate rate in the £ to be determined by each rating authority in respect of the local financial year 1978-79..."

The Deputy is not permitted to quote at Question Time.

"...shall exceed the previous year's estimate." The imposition of that ceiling means, in effect, that the local authorities cannot respond to issues of concern, particularly since the Minister did not say he would be willing to consider exceptional cases. Is it not a fact that the traditional flexibility these authorities had is no longer there?

It is not a fact, because the 10 per cent is to keep it in line with national budgetary policy. It is not confined solely to 10 per cent. Because of the buoyancy in local authority areas it can be much higher. I will give the Deputy the example of his own local authority Dublin Corporation. Because of buoyancy and State grants, the increase for Dublin Corporation on rates being collected will total 16.6 per cent. Might I point out that for Dublin County Council it will be 17.8 per cent? I should like to say also that this matter was fully debated in December. On that occasion the Deputy said that he would not be averse to a suggestion that expenditure by local authorities should in some general way find itself in harmony with national economic policy. He went on to say, "I do not believe that local authorities should have an open-ended honeymoon if they want to go on a spree".

(Cavan-Monaghan): Is the Minister aware that some county engineers have publicly stated that the funds available this year will not enable them to maintain county roads at existing levels? Does the Minister not think that that is false economy?

I find it very strange that they have gone to press on this matter because the allocations from the Road Fund were only made at the end of last week.

(Cavan-Monaghan): The Minister knows perfectly well that I am talking about repairs to ordinary county roads that are used by ordinary humble people.

A further £2.6 million was made available in the budget for repairs and maintenance.

Would the Minister not agree that it is a serious situation when the manager of Kildare County Council stated at an open meeting that on the allocation made to the council by the Minister——

That is a separate question.

It is not a separate question. The manager of Kildare County Council stated that he could not maintain existing services on the allocation made to the council by the Minister and that it appeared that people who are employed by the council would have to be let off.

I should be surprised if Kildare County Council were obliged to let people off this year because they will do remarkably well in regard to road allocations, if the Deputy was speaking about road allocations.

I was not; the county manager was.

Flattered as I am that the Minister had to have recourse to my humble comments to provide an answer, is it not a fact that for the first time in the history of this State——

——a circular was issued on 8 December to all local authorities. The circular stated that the aggregate increase in expenditure must not be more than 10 per cent above the previous year.

No. There was a similar circular in 1978.

Black is white.

Is it not a fact that last year's salary costs rose by more than the amount by which councils were allowed to increase their expenditure and that this put a squeeze on non-salary expenditure?

Order. I am calling Question No. 3.

If the Deputy puts down a question I will answer it.