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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Local Authority Grants.

Domestic rates replacement grant shortfall

Summary

Clohessy sought the shortfall between the £142.7 million grant and revenue local authorities might receive if domestic rates remained. Flynn said a reliable calculation was problematic because assumptions and outstanding rate decisions made the figures unavailable.

asked the Minister for the Environment the amount by which the sum of £142,700,000 provided in this year's Estimates for grants to local authorities in lieu of domestic rates falls short of the sums which local authorities would receive at current rate levels if domestic rates were still payable; and if he will make a statement on the matter.

Comment on this

Because of the assumptions which would have to be made relating to rate levels, standards of collection, etc., nine years after domestic rates were abolished the value of any calculation on the lines requested would be problematic; such a calculation is in any case impossible since not all local authorities have so far determined their 1987 rates.

Comment on this

Is it not a matter of fact that an undertaking was given to local authorities in 1977, when the remainder of domestic rates were abolished, that the replacement grant would be kept in line with inflation? Since the rate of inflation is not a matter of arithmetic assumption, the Minister's Department are in a position to calculate accurately the shortfall as sought by Deputy Clohessy.

Comment on this

The inflation rate might not create the same difficulty as the other matters I raised. However, the determination of interest rates is often post the event and it would not be possible to exercise it in the calculation of Estimates in advance of knowing what the rate would be. I should also like to point out that many of the authorities have not yet completed their business so it would not be possible to facilitate them in the way the Deputy suggested. There have been many changes since 1977, particularly in regard to the SWA demand and internal capital resources which were allowed to be used towards revenue. In all the circumstances, it would have been a very difficult task to seek the type of information requested.

Comment on this