Business lobby IBEC has called on the Minister for the Environment, Mr Cullen, to urgently review local government funding, claiming it is inefficient, inequitable and unsustainable.

IBEC's director of enterprise, Mr Brendan Butler, believes the Government views the business community as a "soft touch" and is increasingly asking it to bear an ever rising share of the cost of local government funding.

"A review would provide an opportunity to establish a funding framework that will deliver vital services in an equitable, effective and efficient manner," he said yesterday.

IBEC claims there has been a shift from central Exchequer funding to local funding and to meet this challenge, local authorities must find efficiencies in service delivery or resort to increasing the available revenue streams.

"It would seem most have chosen the latter option as there have been very substantial rises in user charges such as rates, waste disposal charges, development levies, water supply and water treatment charges," according to Mr Butler.

IBEC said these rises were placing real and unwanted costs on the business community and accused the Government of transferring charges and taxes from national to local level which does nothing to reduce their negative impact on competitiveness and employment.

The problem has been compounded by the lack of equity in user charges, Mr Butler said.

"Clearly the structures and systems of local government funding are well below what is required for a modern, efficient and growing economy.

"Funding must become equitable and transparent and should reward local authorities that deliver services efficiently," he added.