asked the Minister for the Environment if he is aware of the critical financial situation that has arisen at Galway County Council following notification that the domestic rates and agricultural grants for local authorities will only be increased by 0.8 per cent in 1984 over the 1983 figure; and the action he will take to avoid redundancies.

I am aware that Galway County Council, in common with other local authorities and public agencies, are having to operate in difficult financial circumstances.

In comparing the 1984 provision for rates support grants with that for 1983 it must be remembered that the latter was increased by the present Government by £31.5 million over the provision made by the previous Government. This increase has been sustained into 1984 and an additional £2.27 million provided. The aggregate of current State grants and subsidies to local authorities in 1984 is expected to be 10.3 per cent approximately higher than the outturn for 1983. Current and capital allocations together will be up by £65 million approximately. Almost two-thirds of all local authority spending on current account is now provided by the Exchequer and, given the many other competing demands for Exchequer resources, this is as much as can be done in the prevailing conditions. I hope local authorities will do everything possible to minimise the adverse impact on employment by means which should include reasonable use of local sources of income and measures to promote greater cost-effectiveness in operations and in the elimination of any wasteful procedures.

I have undertaken a wide-ranging review to see what measures can be taken to put local authority finances on a firmer basis for the future.