THE three Coalition leaders have modified their strategy for seeking all party support for new proposals to fund local government.
The Taoiseach, Mr Bruton, has asked Mr Spring and Mr De Rossa to formulate a Government view on the report from consultants KPMG into the financing of local government before putting it before the Opposition parties for their approval.
With some sources suggesting that £600 million in funding is required, KPMG recently recommended that a new national sales tax or a local sales tax should be introduced.
The other options outlined in the report involved the retention of the current water and service charges alongside a statutory requirement to fund local authorities on a percentage basis.
Conscious of Opposition plans to drop the residential property tax in their election manifestos next year, the Minister for the Environment, Mr Howlin, initially recommended to his colleagues that all party support should be sought for proposals to reform the funding of local government well in advance of the election. It was his intention to publish the KPMG report at an early date and refer it to an all party committee to seek consensus on its recommendations.
Mr Bruton has cautioned, however, that it would be advisable for the Government parties to formulate its own views on the reports recommendation before approaching Fianna Fail and the Progressive Democrats. The three party leaders are currently considering it.
The Government's aim is to publish the report and seek all party consensus on the financing of local government before the end of the month.
