asked the Minister for the Environment if he is aware of the shortfall in the budgetary provision which will seriously affect local authorities' finances in 1982; if in view of the time necessary to implement local charges for services, he will move a Supplementary Estimate to provide central funds for local authorities to rectify the estimated shortfall in 1982; and if he will make a statement of the matter.

(Dublin South-East): I am aware that certain decisions of the previous Government would have resulted in shortfalls in the budgetary position of local authorities. Since taking office the Government had made provision for additional funds amounting to almost £73 million for local authority services. I expect to bring an appropriate Supplementary Estimate before the House in due course in relation to the voted portion of the extra money. I am confident that these additional funds will go a long way towards alleviating the financial situation of local authorities.

Am I to take it that the deficit in the current revenue of local authorities will be fully made up as a result of the Government's decision?

(Dublin South-East): What I said could not be taken as a blanket assurance. I said I expected to bring an appropriate Supplementary Estimate before the House in due course in relation to the voted portion of the extra money.

With regard to the deficit that will then remain, is the Minister aware it will take some time to effect legislation to allow local authorities to get local revenue and in view of the lead-in time for 1982, local authorities will not be able to make up the deficit by way of local contribution? In those circumstances would the Minister take steps to effectively reimburse local authorities for the amounts involved?

(Dublin South-East): Each local authority has to be considered on its own merits and I am currently meeting deputations from different local authorities. I repeat that the assurance I have been asked for cannot and will not be given, and it would be totally unrealistic for me to do so. Local authorities, and many other financial institutions, often find themselves in tight liquidity binds. But we have to do our best with the money available to meet the needs of the local authorities.

Is the Minister aware that since central Government took over establishing the allowable rates increases the credit balances of most local authorities have disappeared and a number of them are working on deficit balances? Is he further aware that most local authorities are starved of funds and are not able to keep their established complement of workers and unless extra moneys are provided this year there will be severe redundancies in most local authorities?

(Dublin South-East): Part of the Deputy's question is very alarming. He may not realise that what he said is not the case with all local authorities. I am happy to have this opportunity to refer to the shortfall in the domestic rate grant to which he referred. The previous Government provided £138 million for the grant in relief of domestic rates at which time it was estimated to be £14 million short of what was necessary. Subsequent estimates now show the shortfall to be £12 million. The previous Government's intention was for local authorities to raise the shortfall by new charges for services — £4 million from charges for planning permission and the balance from other charges.

Would the Minister state the difference between the policies established by the last Government and the policy being pursued by his Government?

(Dublin South-East): I think I have done that in my reply.

Not effectively, because there is still a deficit to be met.