CCI: Govt must stabilise local authority funding

The Chambers of Commerce of Ireland (CCI) have welcomed the increased funding to local government in this year’s Book of Estimates but have called on the Minister for the Environment, Heritage and Local Government to stabilise future allocations to local authorities.

Speaking this afternoon CCI Chief Executive John Dunne said: "While we welcome the increase on last year’s estimates, local government funding continues to be allocated in an ad-hoc manner, stifling local authorities’ long-term financial planning and placing an ever-increasing burden on business."

"The strong tax buoyancy we are currently enjoying offers the Government an excellent opportunity to re-adjust and re-balance our tax system to establish consistent, long-term funding arrangements for local authorities."

CCI also pointed out that as public sector pay annually accounts for over 40% of current expenditure, pay costs continue to dominate Government spending to the detriment of the development and improvement of public services.

“In this context,” Dunne said, “no more than 50% of the overall increase in voted current expenditure in any given year should be in respect of pay without the express authorisation of the Oireachtas.”