Mr. Reg McCabe:

The issue of local government structures generally is something of a difficulty for us because we are here to discuss the provisions of the Bill and issues around the cost of local government. If we were to have a position on local government reform generally, it would be along the lines that the number of local authorities should be reduced. I am reluctant to mention a figure by which they should be reduced, but it would be substantially below what it is. We would like to see considerable rationalisation in the local government structure.

There are significant variations in the head counts in local authorities, between the authorities in Dublin which cover a substantial population and those at the other end of the scale that are so small one wonders whether they are viable, particularly in counties such as Leitrim and Longford. I have nothing against these places, but in the interests of reducing costs and increasing effectiveness, IBEC as a business organisation would support substantial reform and restructuring in the local government sector. That would be a longer term aspiration. I point, for example, to what is happening in Northern Ireland where the number of local authorities has been reduced to 12 or so. The legislation providing for this reduction will be implemented from next year. It will be interesting to see how it is implemented in places such as Belfast and its impact.

I am reluctant to get into a political debate on town councils, but as the matter has arisen in a number of contributions, I will make a comment. There are 80 town councils which cover 15% of the population. It is said this level of local government is important, but I wonder how effective it is considering that it is focused on such a small percentage of the population. This is a debate that can be continued. I am not convinced the municipal districts will be highly effective, but at least the new structure will be implemented in all local authority areas. It will be more universal, whereas the town council structure is patchy in terms of its impact.

That is all I have to say, but perhaps Ms Caulfield might like to add to what I have said.