asked the Minister for the Environment the consideration which he has given to reforming local authority financing; and the conclusions, if any, which have been reached.

22.

asked the Minister for the Environment the Government's proposals for providing adequate finance for local authorities; if such proposals include a plan for the introduction of a tax on people's houses; and if he will make a statement on the matter.

I propose to take Priority Question No. 59 and Question No. 22 together. While I have given detailed consideration to a range of options for reform of local authority financing, the question of conclusions or Government proposals does not arise in advance of formal consideration and any decision which may be taken by Government on the various matters arising. In the meantime local authorities continue to be assisted in meeting the cost of local services by a range of general and specific grants.

Would the Minister not agree that local authority financing is currently in a state of chaos? When does he intend to introduce comprehensive reforms in this area?

I do not accept that local authority financing is in a state of chaos but I do agree that reforms in that area are required. There have been some significant changes over the past year which have helped. They include the transfer of certain statutory demands by the Office of Public Works and ACOT to the Exchequer, the removal of the rates exemption on certain ESB property, the voluntary redundancy and early retirement package, earlier Estimates periods and the streamlining of the financial transfers to various authorities under the Local Loans Fund Act, 1987. These matters have helped considerably in so far as local authority financing is concerned but they are not the full answer.