Ms Gina Quin:

I will deal, first, with the issue raised by Senator Cáit Keane in respect of the 80% deferral. Our concern is that the Minister was not clear in his answer to Deputy Barry Cowen's parliamentary question on the period for which this deferral would be in place. It is couched within the context of the establishment of Irish Water. We agree that water is an absolutely essential resource and that during the past eight or ten days Dublin has experienced water shortages. In such circumstances, there is an urgent need for this matter to be addressed. In the context of investing in water infrastructure, the decision to be made must reflect the long-term reality. We are concerned that there will not be a clear cut-off point at the end of 2015 in respect of the reinstatement of 80:20 rule relating to local authority funding. We will be seeking further clarification from the Minister on whether the 80% to which he committed will come into place in 2015.

With regard to Deputy Marcella Corcoran Kennedy's question on equalisation, we recognise that there are very significant differences between various areas of the country in the context of population base, the commercial rates base, etc. We must also recognise the scale and scope of Dublin. The greater Dublin area accounts for 40% of the population on the island. The individuals who live within that area must be provided with adequate services. The other factor which is very real for local authorities in the context of planning is that the Central Statistics Offices estimates that the population of the greater Dublin area, currently 1.3 million, will rise to over 2 million by 2020. That is a significant increase and we must seek to run slightly ahead of the estimates in providing services and putting in place the necessary infrastructure such as schools, adequate water supplies, roads, public transport, housing - a major consideration - and so on. Many of these are supported and supplied by local authorities.

While I appreciate that there are challenges throughout the country, I am strongly of the view that the principle of 80% of local taxes being retained in the areas in which they are raised should be implemented. Dublin will, of course, continue to contribute very significantly in terms of the income tax spend. Over 50% of the national income tax yield, 62% of the national VAT yield and 59% of the national corporation tax yield emanate from the Dublin area. It is still making a major contribution to Exchequer funding and revenues and, as a result, we want the principle to which I refer to be implemented.

It is a question of connecting local services with political representatives, such as local councillors, who have responsibility for those services. With regard to the plebiscite, I agree with Deputy Cowen that we might have moved more quickly, but we are confident that the online surveys the Lord Mayor, Oisín Quinn, is conducting will show a very strong level of public support for an elected mayor of Dublin. We are somewhat concerned by some of the discussion about local authorities having the ability to veto the legislation. We think it should be up to all of Dublin's local authorities to collectively make the decision on whether to hold a plebiscite next May, in tandem with the local elections. It has been shown empirically in other cities that a mayor can have a significant effect, not only on the economy of the region and Ireland as a whole, but also on the well-being of all citizens living here now or in the future.