Catherine Murphy (Kildare North, Independent)
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That is a critical issue that will be raised in the coming months. In terms of the income of local government, some years ago the motor taxation income was ring-fenced for the purpose of establishing the Local Government Fund. That has largely proven to be the case. I have figures from 2006 to 2014. It is a sizeable amount of money – close to €1.1 billion. Basically, what appears to have happened is that in 2012, €46.5 million was taken out of that and given to the Exchequer. Last year €100 million was given to the Exchequer and this year €600 million is going from the Local Government Fund to the Exchequer. What has happened is that a decision was taken to change the regime in terms of ring-fencing the motor taxation fund. That fund is now going to the Exchequer. The money is primarily going to pay the national debt – the €8.2 billion it is costing this year to service the debt. We must focus on that. It is an enormous amount of money.

The money is in addition to the €490 million that is going from the local government system to Irish Water. That is changing the dynamic hugely in terms of local government. I wish to highlight the language that is being used on savings. The language that is used refers to savings to the Exchequer in regard to the €2 billion for water services. The reason it is a saving to the Exchequer is because there is a new income stream, namely, domestic water charges. The Minister might outline the extent of the domestic component he includes in that. Some significant changes are taking place. We got a presentation from both Ministers about what would be done but we did not hear about what will not be done. I hear expectations all the time about what people are getting for the property tax, why they have to pay water charges and whether it is a conservation measure. They are the two big issues people raise in terms of the impact of such taxes on their personal finances.

The Minister’s script referred to amalgamations at local government level such as of the Leader fund. There has been a dramatic reduction in the Local Government Fund which will affect all of the functions carried out by local authorities such as libraries, arts, parks maintenance, playgrounds – where they exist - and street lighting. The fund has been reducing year-on-year. The allocation from the Local Government Fund is not evenly spread due to variations around the country in terms of the resources and the income from commercial rates.

From a breakdown I got from the Department, the likes of Fingal County Council will be getting €165 per head from the Local Government Fund while Leitrim County Council will get €260 per head, understandable due to its small population base. The areas paying most in property tax will be getting the least amount of money from the Local Government Fund, however. People in those areas are entitled to ask why they are getting so little for their high property tax.

This week I had to refer ten families, not individuals, to the homeless officer in Kildare County Council. This happens every week now because of the high level of rents, low rent caps and limited availability of rental properties in the county. While increased employment with Intel and others in County Kildare is a good news story, it has a negative impact on the availability of rented accommodation. Up to 50% of those on the national housing waiting list, 45,000 people, are located in six local authority areas, namely, Dublin city, Cork city, Cork county, South Dublin, Fingal and Kildare. In the case of the bottom six local authorities with the least demand, they account for less than 4% of those on the national housing waiting list.

There is an absolute crisis in some parts of the country. It is a misrepresentation when the Minister talks about ending long-term homelessness when we are seeing an escalation in the problem. Is there anything worse than not having a roof over one’s head? I had a family attend my clinic before Christmas who spent the Christmas in bed and breakfast accommodation. In all my years as a local authority member, I never saw such a situation. There is an urgent need for a targeted response to this problem.

The joint committee recently was told by Dr. Michelle Norris that €480 million from European funds was available for the approved housing body sector. It could be used to fund housing associations like those in Germany and Holland where there is alternative housing provision. However, the tier 3 housing associations are not sufficiently capable of drawing down these funds. We are so fixated on doing head counts on how few people are working in the Department. Would it not be better, given that we are spending over €400 million in rent assistance, to increase the number working in the Department to have the expertise to draw down these European funds and make some savings for the Exchequer, as well as boosting construction sector employment? I do not get the logic of this. Will the Minister of State address this question?

People are confused with figures being bandied around such as €600 million, €490 million and €780 million. In addition to the moneys going to Irish Water, €600 million is going out of the Local Government Fund. That is pretty much going from motor tax receipts. This notion that, with a large fund available to local government, there will be increased local authority services is actually a complete con job. Essentially, the funds from the property tax are going to service the national debt. Will the Minister confirm what is happening with the motor tax fund?