Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I am delighted to be invited to speak about local government and planning in my role as Minister of State with responsibility for that area. I was delighted to accept the invite. As a former Member of the House, I am aware that Members have a huge interest in local government affairs and are fierce advocates for strong local government. As Minister of State, that advocacy and support are appreciated. Since my appointment in late December, I have been to the House on several occasions on individual policy matters but this is my first opportunity to address the subject of local government in a broad and general way. I intend to use this opportunity to set out my main priorities for my term in office but I am here primarily in listening mode. I look forward to hearing the views of those present on what they deem is the general health of local government.

Local government is a constitutionally separate arm of government. Ireland's 31 local authorities are fully independent corporate entities with full responsibilities under the law for the performance of their functions. Local authorities provide in excess of 1,100 services on behalf of some 30 central government Departments and public bodies. Many of these programmes are key deliverables under critical Government policies. I acknowledge the role of councillors, their reserve functions, and the phenomenal work they do within their individual local authorities, particularly on the ground for their constituents. The relationship between national and local government could, therefore, be described as one of co-dependency. Housing for All, active travel, Sláintecare, Age Friendly Ireland, town centre first, the biodiversity officer programme, climate action, the sports plan and the waste plan for the circular economy, among others, all require significant local authority input to deliver. One of the features of local government and delivery is that many of the national programmes are now delivered through the local authorities as regards funding, including the urban regeneration and development fund, URDF. Many of these programmes come through the local authorities.

The role of local authorities in the national response to the Covid-19 pandemic and, even more recently, the Ukrainian humanitarian response has been fundamental to the State's ability to manage these emergencies. I applaud the work of staff and councillors in both these situations at local level. Members will agree, therefore, that a well-functioning and appropriately resourced local government sector is critical to the success of the Government programme. I am pleased to report that local authorities are in a stable financial position following the financial crisis years. Central government support during the crises of the Covid-19 pandemic and the Ukrainian war has enabled local authorities to ensure they have financial stability and to minimise negative financial impacts.

Central government acknowledges the pressures faced by local authorities, particularly in 2022-23 in respect of general inflation and higher costs, and the challenging circumstances in which the sector is now operating. In 2023, the Exchequer is providing an allocation of €60 million to assist local authorities with the increased costs of providing a wide range of services and, in particular, rising energy costs. Out of the €481 million being provided through the local government fund to support local authorities in 2023, €287.2 million will go towards assisting local authorities with the cumulative effect on pay costs arising from national pay agreements and a variety of measures under financial emergency measures in the public interest, FEMPI, legislation. The supports have increased year on year from €4.7 million in 2016. These allocations for 2022 demonstrate my Department's commitment to ensuring local authorities will have the necessary resources to perform their functions this year. For 2024, the review of local property tax, LPT, baselines is under way. The objective of the review is to recommend a set of key indicators, which will be used to allocate available funding to local authorities in a fair, equitable and transparent manner. It is intended, once approved, to apply the recommendations to 2024 LPT allocations.

We are currently embarking on another very significant local government reform. A Bill to provide for a directly elected mayor for Limerick is well advanced and will be published very shortly. This will make a major contribution to the development of Limerick and the mid-west region over the coming decades and improve the lives of people who live there. The mayor will be elected for a term of five years and will take on the executive functions of the current chief executive. Some functions will remain with the CEO but, in the main, they will transfer to the new mayor. The mayor will also have new functions and responsibilities, which are being provided for under the legislation. However, this new office of mayor will recognise the role of the democratically elected council and the council will continue to exercise its reserved functions, as before. The mayor will obviously have a democratic mandate, which will be very significant and the first of its type in Ireland. As a Limerick man, former councillor and national representative, I am proud to see Limerick leading the way for other local authorities on this matter. Furthermore, the forthcoming Bill also provides for a plebiscite in any other local authority that wishes to hold an election for a directly elected mayor in the future.

Members have always been strong defenders of local authority-elected members, and their role and conditions. A fundamental reform of the remuneration payable to councillors was approved by the Government with effect from 1 July 2021, taking account of the 2020 Independent Review of the Role and Remuneration of Local Authority Elected Members, known as the Moorhead report. These reforms reflected the importance of the role of the councillor in respect of statutory policymaking, strategic development of our communities, governance and oversight of the local authority, community representation, and the expansion in the role since the 2014 reforms. An almost 40% increase in the annual remuneration payment, which is now linked to a local authority pay scale, the retention of the existing annual expenses allowance, and the introduction of the vouched local representational allowance have put the remuneration package available for councillors on a more solid footing for all.

Legislation introducing maternity leave for councillors was enacted in December last year. This law also provides for the temporary co-option of a substitute for a councillor who wishes to step away temporarily from the role while on maternity leave or who is absent due to long-term illness. I fully recognise, however, that the process of improving councillors’ terms and conditions must continue. It is something I am very much committed to. In that regard, a review of the retirement gratuity in place for councillors is under way within my Department. Furthermore, I have asked my officials to prioritise the examination of the personal safety allowance very recently introduced for all Oireachtas Members in order to prepare a business case for the approval of the Minister for Public Expenditure, National Development Plan Delivery and Reform for a similar allowance for councillors. I am very much in the process of finalising that and the submission will go to that Department very shortly. I will also shortly introduce regulations to provide for an allowance for women councillors to enable them to have extra administrative or secretarial support after they have had a baby, as part of a wider package of family-friendly supports. All of these measures are designed to make the role of councillor viable and sustainable for anyone interested in entering local politics, which we want.

In the lead-up to the 2024 local elections, efforts to encourage greater diversity and gender balance in local government will deepen as my Department continues its funding support to women’s groups, such as Women for Election and See Her Elected, and political parties and groupings, as well as initiatives undertaken at local authority level. I want to see more women entering politics and to create an environment that is more conducive to that. In addition to these important improvements in councillors’ term and conditions, let me also add that it is important their independent role in overseeing the performance of their local authority is fully respected. They are democratically elected by the citizens of their counties in their local authority areas to fulfil their role, are ultimately accountable to the electorate every five years, and are facing an election next year.I thank the Cathaoirleach and the Members for the invitation to attend here today. I want to hear their views and engage in robust discussion in this area. I am fully aware of the issues. I am travelling around to all the local authorities and meeting the local authority members. I see the great work they do but I equally see the demands of carrying out the role. The role has certainly changed over the years and we want to continues to make improvements to reflect that changing environment and dynamic within which councillors have to operate. I very much welcome today's debate and I look forward to hearing Senators' views.