The Government has indicated that it intends to continue to allow local authorities to retain motor tax receipts in place of charges for water and sewerage services at least for the duration of the coming year.
The scheme was introduced by the previous minister for the environment, Mr Brendan Howlin, but on assuming office the present Minister, Mr Dempsey, announced that new funding arrangements would be put in place.
With no such arrangements announced, the General Council of County Councils expressed its concern that local authorities were now facing the deadline for the adoption of their annual estimates. "When you don't know where the funding is coming from, or how much you are getting, it places the finances of county councils all over the country in doubt", Ms Connie Hanniffy, the cathaoirleach of the General Council of County Councils, said yesterday.
However, in response to inquiries from The Irish Times, a spokeswoman for the Minister indicated that, in the absence of the review of local authority finances being completed, the authorities would be allowed to continue with the existing arrangement.
Pointing out that motor tax receipts were currently some 5 per cent higher this year than anticipated, the spokeswoman said: "It is intended to distribute the buoyancy to local authorities over the coming weeks.
"While we have been tracking the income from motor tax during the year on a close basis, we have had to wait until near the end of the year to be able to estimate the final figures. For the next year, we will have to again wait and see what buoyancy emerges from motor tax. If it holds up, the monies will be fully distributed to local authorities as they become available." The spokeswoman added: "For future years we will have to review the funding in the light of the arrangements currently under discussion."