HC Deb 26 February 1991 vol 186 cc449-50W
Mr. Beggs

To ask the Secretary of State for Northern Ireland if he will outline the reasons underlying the receipt by Lame borough council of relatively low amounts of general grant paid to district councils in each of the last 10 years; and what consideration he has given to revising the formula for general grant to achieve more equitable distribution.

Mr. Needham

General Exchequer grant (GEG) payable by the Department of the Environment (NI) to district councils is calculated in accordance with a statutory formula set out in article 3 of, and schedule 1 to, the Local Government etc (Northern Ireland) Order 1972. The calculation is dependent on the population, rateable valuations and the penny rate product of a district in a particular year.

The GEG is divided into two parts:

  1. i. the derating element which recompenses councils for loss of income due to the statutory derating of certain hereditaments; and
  2. ii. the resources element which provides additional finance to those councils whose valuation resources per head of population is below a standard determined by the Department.

The amount of GEG paid to Lame borough council was calculated strictly in accordance with the statutory formula. There is no evidence to suggest that the formula results in an inequitable distribution of GEG and there are no plans at present to revise it.