I propose to take Questions Nos. 41 and 44 together.
Local authorities fund their expenditure, including expenditure on pay, from a variety of sources, including specific State grants, commercial rates, rents, fees and charges for services and general purpose grants from the local government fund. The issue of benchmarking costs in 2004, as with other current expenditure demands, will be dealt with by local authorities in the context of their annual budgetary process.
The recently published Abridged Estimates Volume, AEV, indicates that €1.118 billion will be available to the local government fund in 2004, an increase of approximately €38 million over the amount available to the fund this year. In accordance with normal practice, I intend shortly to notify local authorities of general purpose local government fund grant allocations for 2004 in the light of this position, updated by end-November data for motor tax revenues and by other end-year expenditure reviews across my Department's programmes.
I am satisfied the increases to be provided in general purpose grants from the fund will make an appropriate contribution to meeting the increased costs of local authorities in 2004 and will avoid the need for undue increases in rates, fees and other local charges in 2004.
In accordance with normal practice, I intend to notify local authorities of non-national road grant allocations for 2004 early in the new year. All the extra revenue, estimated at €34 million, generated by the 5% increase in motor tax from 1 January will be assigned to the non-national roads programme.