8 February 2000

DEPARTMENT OF ENVIRONMENT ADDRESSES DISTRICT COUNCIL GRANT

In a written Assembly Answer, Environment Minister Sam Foster, announced that further adjustments will be needed to the Resources Grant paid to District Councils.

Shortly after devolution, the new Minister and his Department discovered an administrative error in data supplied to it for use in the complex Resource Grant formula for 2000/01.

The new Department immediately took steps to correct the provisional figures given to District Councils, and initiated an urgent review of the pre-Devolution figures.

The new Department's review established that a similar error had occurred in the 1997/98 financial year.

District Councils will be given revised figures by the Department.Those Councils that had been under-funded in relation to the 1997/98 financial year will be fully compensated.

The Minister also announced that he has initiated an urgent review of the formula for calculating the Resource Grant and its operation.