Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

I was a member of a local authority for over 30 years. The legislation which barred Deputies also being a member of a local authority was, I believe, bad legislation. As a result of that legislation the link between what happens locally and nationally was broken. This is supported by today's discussion in terms of the lack of funding available to local authorities. If one is not a member of a local council one does not know the ins and outs of its budget or the demands on it.

I agree with Senator Boyhan's point about accountability to the Oireachtas. As Members we ought to have more input into local government and we need to find a better way of doing this other than an annual meeting. I also believe that local authorities should be accountable for their budgets to the Committee of Public Accounts. It is in that arena that the local authorities can provide clarity around their budgets. They will need to have all the facts before them when they do so. In the interim, there is no accountability. I welcome the work being done by the National Oversight and Audit Commission, NOAC. I am disappointed that the body has only ten staff. I cannot imagine how it is getting through all of its work. The commission needs a lot more support.

As stated, the job of the National Oversight and Audit commission is to provide independent oversight of the local government sector and it has wide-ranging functions in that regard. As I said, the commission is doing important work. Does it meet with its managers, auditors and councillors in a public forum? Failing an appearance of NOAC before the Committee of Public Accounts, it should be seen to be holding the councils to account in its annual report in terms of which is operating to best practice and where practice is worst. In other words, it should identify which local authority is bottom of the list and hold it to account in that regard in a public forum. If that cannot be done via the Committee of Public Accounts then I am sure the commission has the power to do it. This would bring about accountability and a focus to the work of the commission. There is no doubt but that the commission is doing excellent work but it does not have sufficient staff. We need to know more about it and what I have suggested might assist us in that regard.

In regard to finances, I believe there is need for a root and branch reform of local government. There is need for an independent analysis of how it operates, where best practice is adhered to, the most vibrant local authority, the best mix in terms of business input and so on. I welcome the County City and Management Association, CCMA, comment about it being business and job focused. I believe that is happening. However, there is need for business expertise in this area to encourage local authorities countrywide to find new ways of being more accountable, more efficient and so on. I do not know if there are business experts in the National Oversight and Audit Commission. I would like more debate on this issue. I believe by focusing on these issues publicly the commission will get a better result.

In regard to debt accrued by councils when land values were rising, some councils, including Louth County Council, bought land in good faith that is now worthless. There are examples of land purchased for approximately €12 million which is now worth only €1 million or less. Where local authorities made decisions in good faith and are now millions of euro in debt the Government should remove that debt from them to ensure they can spend their budgets on services and so on. The decisions that were made were made at a time when property values were high. The councils purchased that land to develop them for housing and communities. I would welcome the views of managers on that issue. Perhaps we could establish a NAMA-type agency to remove these bad debts from councils. We need to ensure that no local authority is encumbered by bad debts. Much of the budget of Louth County Council is servicing this type of debt and as such it cannot provide services and so on in the county.