asked the Minister for the Environment the action he intends to take to compensate local authorities for the cuts in their finances in 1986.

The overall effect of the provisions of the 1986 budget will be to enhance the financial capacity of local authorities to provide the services which are financed from current account. A true comparison of the financial provisions for local authorities in 1986 contained in my Department's Estimate shows that, in total, they represent an increase in real terms over 1985.

In so far as expenditure on capital account is concerned, I am satisfied that the capital provisions contained in the 1986 Public Capital Programme, as amended, will be adequate to meet the requirements of local authorities.

How can the Minister of State say that this budget and the Estimates will enhance the financial situation of local authorities and will increase in real terms their allocation when the Book of Estimates says in relation to the grant to local authorities in relief of domestic rates, that the provisional outturn for 1985 is £169 million and the provisional outturn for 1986 is estimated to be £144.5 million—a decrease of 14 per cent? Even taking into account the supplementary welfare allowance of £18,900,000, there will still be a decrease of about £3 million in last year's outturn, so how can the Minister say that, the position will be enhanced when every council member around the country is striving to adopt rates?

In 1985 the total rate support grant was £287 million. The total for this year will be £304.9 million. That is an increase of 6¼ per cent. The support grant will be £264 million, the saving on the supplementary welfare allowance is £18.9 million, the proceeds of house sales——

Which the Government swiped back from them.

—— is £16 million and the farm tax is £6 million. The local authorities will be approximately 6 per cent better off than they were last year.

The Minister is a sham.

They are irrefutable facts.