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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Service Charges.

Service charges and grant allocation

Summary

Molloy asks whether the rates support grant is affected by local authorities’ service-charge decisions and whether the Minister will compensate authorities that do not raise charges. Kavanagh says continuing water or sewerage charges will not affect grant distribution, but cannot confirm whether extra funding will be available to replace foregone revenue.

Where a local authority decide not to impose service charges, will this affect the amount of the rates support grant? How is the amount of such rates support grant calculated? Does the Minister agree that when revenue is raised locally through service charges the rates support grant is reduced, which is a disincentive to imposing charges? Could the Minister also state whether the Government intend to abolish water charges?

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

That seems to be a separate question.

Comment on this

In regard to the last question, local authorities are free to decide whether they wish to continue imposing water and service charges or to suspend them. I would not like to take that facility away from them as they may feel charges are necessary to increase their revenue. A number of questions were put to me. The rates support grant will not be affected because a county council, an urban council, or a county borough wish to continue raising revenue through the continuation either of water or sewerage charges. That will not affect the distribution of the rates support grant.

Comment on this

Will the Minister make up the balance? If a local authority decide not to raise revenue from service charges in 1986, will the Minister increase the rates support grant accordingly?

Comment on this

As I said, at the moment I have no indication of the final outcome of the Government's deliberations on the Estimate for my Department or for any other Department and, therefore, I cannot tell the Deputy the amount of money that will be available to me under the rates support grant. I cannot say if that latitude will be given to me with the amount of money I receive eventually.

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