Oireachtas Joint and Select Committees

Wednesday, 21 September 2016

Joint Oireachtas Committee on Housing, Planning and Local Government

Estimates for Public Services 2016: Vote 34 - Housing, Planning and Local Government

9:30 am

Photo of Paudie CoffeyPaudie Coffey (Fine Gael) | Oireachtas source

In his opening statement the Minister mentioned that the Exchequer provision for housing was increasing by €145 million, bringing the total to €983 million. It is important to note for the public record that this funding will facilitate various housing initiatives to meet the housing needs of over 17,000 households. I know that we had a long debate about the Minister's housing action plan, but I would like to know how the Exchequer provision to tackle homelessness compares to that provided in 2014 and 2015. Will the Minister provide details of his proposals in this regard? I expect that this year's provision represents a substantial increase. It is important for the Minister to expand on this matter in the interests of making information available to the public.

Water provision is obviously a very controversial topic. The public needs to have confidence in public policy. In his opening statement the Minister said €17.5 million had been provided in the Estimates for rural water programmes. This funding is essential to support many of the group water schemes around the country that are providing quality water for those who have always been paying for the supply of water in rural areas. Following the suspension of water charges, how much is it costing the Department and the State to subsidise Irish Water? It is very important in the public interest to have clarity on this question as part of the debate that is ongoing. I respect the fact that an independent commission is looking at this area. There is a lot of populism in the public debate about the issue of water charges. If the taxpayer is having to fund and subsidise Irish Water, that obviously means that substantial funds are being transferred from other essential services funded from the public purse. I ask the Minister to expand on this. I know that €110 million that had been provided for the water conservation grant has now been transferred to the local government fund to assist with this process. If the Minister could give us more information, it would add to the public debate on the provision of quality water services. If we are to expect the taxpayer to fund the provision of water services in its entirety, it is important for us to understand how much it affects the Estimates.

I agree with the requirement that 80% of the local government fund, which essentially comes from motor tax and local property tax receipts, be retained for local services in the various local authority areas. The other 20% is redistributed among local authorities. This system of funding equalisation helps those local authorities with a relatively low rates base to continue to deliver public services. Local authorities are allowed to vary the local property tax rate charged by 15%. I understand 14 local authorities reduced the local property tax rate last year and that 11 have done so this year. Are the same local authorities reducing their local property tax rates all the time or is there a variance? I ask the Minister to give us some information. At a time when local authorities and councillors are, rightly, demanding extra funding for the provision of public services within their remit, it is essential that local councils adopt a responsible approach to the local property tax. They should not reduce the rate for the sake of it. Property tax reductions have a direct impact on the provision of public services in local authority areas ad we should discuss the issue. I would like to hear the Minister's views on it.

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