Cullen Announces €752 million General Purpose Funding for Local Authorities

10/12/2003

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 Cullen Announces €752million General Purpose Funding Allocations for Local Authorities in 2004

"Increase removes the need for undue increases in local charges next year" – Cullen

Mr. Martin Cullen, T.D., Minister for the Environment, Heritage and Local Government today (9th December, 2003) announced a €752million funding package for local authorities in 2004. The Minister will announce separate funding for non-national roads in January.

Total funding for 2004 is up €92.2million or 14% on last year. The comparative figure for 2003 was €659million. Local authorities in larger counties will receive increases in funding ranging from 11.5% to 18.6% with some smaller local authorities receiving increased funding of over 20%.

Minister Cullen said that in determining allocations for 2004, he was keenly aware of the continued demands on local budgets, including the issue of pay costs arising from benchmarking and Sustaining Progress.

He said that the scale of the package provided: "removes the need for undue increases in rates, fees and other local charges which should be set a reasonable levels. I expect the co-operation of local authorities in this regard", he said.

Announcing the €752million package, Cullen said: "In recent weeks Opposition spokespeople, like the Y2K prophets of doom who preached that the end was nigh, put out bogus claims about local government funding.

"I listened to the views of local representatives, business groups and County and City Managers. I believe this €752million package puts Councillors and local officials in a strong position ahead of agreeing local estimates in the coming weeks".

The package announced funds local authorities in respect of expenditure they will incur in providing local services to the public.

"This copperfastens the Government's view that local government is at the centre of the social, economic and political agenda. These resources will allow local councils to maintain and deepen not just the range but also the quality of services to the public".

Minister Cullen continued: "Since the establishment of the Local Government Fund in 1999, record levels of funding have been channelled through our local government system to improve the quality and range of services being provided to local communities. This strategy has been key to placing local authority finances on a firm footing for the first time in many decades and has been integral to the transformation of the local government system in Ireland".

Minister Cullen concluded: "Local government funding has been a success story since this Government came to office and I want to ensure that this legacy is continued well into the future".