He said a 6.7% budget increase in funding from central government and significant increases in development contributions, such as cash from builders developing new estates, had swelled local authority coffers to record levels in recent years.
Roche said that in recent weeks many councillors had been asked to approve above- average rates increases for shops and businesses but had been kept in the dark about increased income streams for their council in other areas.
This move towards greater transparency will be welcomed by business leaders, who paid more than €1 billion in commercial rates in 2005, almost double the €580m paid in 2000.
The minister strongly criticised councils that imposed rates increases above the national norm of about 4%. He singled out Offaly (7%) and Wicklow (5.5%) but praised Limerick city council for keeping its increase to a mere 0.5%.
“Rates have been outstripping inflation by significant amounts in recent times,” said Roche.
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Impressive performers, he said, included Limerick county at 3.5%, Westmeath at 3%, and Cork city council with a 2.7% increase, marginally ahead of inflation.
He also praised south Dublin, Leitrim and Cavan county councils as models for lesser- performing councils country-wide.
Carlow, too, had kept its increase to 4.5% despite a big loss of revenue with the closure of the Carlow sugar factory. Roche said he had attempted to make allowances for this in an effective 11% increase in Carlow’s funding from central government.
Offaly county council enjoyed a €5m inflow of development contributions in 2004, up from €3.5m in 2003, yet still increased rates by 7% in recent weeks. Wicklow took in €11.5m in 2004, up from less than €9m the previous year.
The minister said many local authorities had ignored a request from him late last year to inform all their members about their income from development levies and from the “general purpose grant”, the annual contribution from central government.
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But he promised to post this year’s figures on the department of environment website, so that councillors had full information on their local authority's revenue flows before striking the rate for 2007.
“I expect local government to be run on a businesslike basis. It is a big business, no longer the Cinderella with small resources,” said Roche. “I will fight my corner for resources at cabinet but I do expect to get value back from local government.”
He said a “ludicrous” proposed rates increase in excess of 15% in Wicklow town had been resisted by councillors after he provided the local chamber of commerce with details of the increased government funding and contributions from developers.