Dáil debates

Wednesday, 8 April 2009

Financial Resolution No. 11: General (Resumed)

 

3:00 pm

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)

In delivering its social housing policy, my Department will work in close co-operation with our partners in the local authorities and the voluntary and co-operative housing sector.

I published the Green Paper on Local Government Reform in April 2008. Other changes have informed our approach to policy development since then. A significant shift was prompted by the publication of the OECD's review of the Irish public service and the report of the task force on the public service, Transforming Public Services. The Government recognises that local government must have a stronger and more meaningful role in public sector activity at local level. The economic challenge and the work of the Commission on Taxation are clearly of direct relevance to the future of local government. The forthcoming White Paper will reflect these developments. Since the beginning of this process, my goal has been to strengthen local democracy. This objective is now more pressing than ever. A local government system with stronger democratic leadership at its heart will be an essential element in assisting local authorities to take local initiatives to respond to economic recovery and, where possible, drive and lead local development to hasten that recovery. I am finalising the content of the White Paper on local government for Government consideration and subsequent publication. It is my intention to see a stronger, more vibrant and more accountable form of local government at the end of this process.

The local government sector alone is responsible for a total spend of some €12 billion this year and with its democratic mandate and broad range of responsibilities the sector is pivotal in promoting and facilitating economic development at local level. Like all sectors, local councils are facing significant financial challenges resulting from the economic downturn and are acutely aware of the importance of mitigating costs borne by business in the present climate.

At the end of last year, I urged all local authorities to exercise restraint in setting any increases in commercial rates in their 2009 budgets in order to support competitiveness in the economy, nationally and locally, and to protect the interests of communities. Local authorities have responded positively, and the national average increase in annual rates on valuation is limited to 1.15%. In addition, I have written recently to local authority managers in respect of the contribution that can be made by local authorities to the maximisation of economic activity and employment at local level. In particular, I asked them to strengthen business support structures to facilitate local business initiatives and developments, with speed and flexibility in the current difficult operating environment.

The local government fund will receive an Exchequer contribution of €417 million in 2009, together with the proceeds of motor taxation of some €1,040 million. Although the income from these sources is reduced from what was available in 2008, it will be supplemented by the pension-related deduction, estimated at €80 million, which local authorities will retain. Deputies will also recall that the Government decided in the last October's budget to broaden the revenue base of local authorities by the introduction of an annual charge of €200 on non-principal private residences. Good progress has been made with the drafting of the legislation necessary to underpin this charge, and I expect to be in a position to bring it before the House shortly after Easter. The Government remains committed to implementing the charge in order to realise a revenue yield projected at €40 million in the current year. This will be retained by the local authorities which collect it. Local authorities are gearing up to implement the charge, and payment will be accepted electronically through a website being developed by the local government computer services board.

It is particularly important now for everyone in the local government sector to work together to ensure that we achieve value for money. Although it is clear that local authorities have made significant strides over recent years in pursuing efficiency and value for money in their operations, there will always be scope to obtain better value. I look to management and elected members alike to continue to pursue the efficiency agenda in conjunction with their business and other partners through the improved governance structures that have been put in place in recent times.

The Environmental Protection Agency received a significant increase of over 40% in funding from the Exchequer in 2008. The reduction in the 2009 allocation reflects the fact that work on the construction of the agency's new headquarters building has progressed well and will require less capital expenditure this year. Like all public bodies, the EPA will need to seek further efficiencies and reduce costs in the year ahead. Nonetheless, I am satisfied that the 2009 provision for the agency will enable it to continue to carry out its important environmental functions.

The allocation to the built heritage still represents a significant investment in the conservation and protection of our rich heritage resource. This will allow for financial support to be provided for the various schemes even though at some reduction. I am conscious of the value of this support in terms of employment in the conservation sector, regeneration of our historic buildings and the contribution to sustainability and tourism. My Department will also continue with the national inventory of architectural heritage, its architectural advice series booklets and the World Heritage programme.

With regard to the National Parks and Wildlife Service, the reduction in available resources will necessitate a sharp focus on the priority objectives we have set ourselves in nature conservation, as well as honouring declared and statutory commitments. I will give priority to ensuring that we meet our obligations under the EU directives on birds and habitats. Concerning the protection of raised bogs, which are designated as special areas of conservation, SAC, we will do all we can to achieve the protection of these sensitive habitats. A new working group will report back to me as a matter of urgency on how to acquire management control of these peatlands and how to address the financial resource implications in 2010 and beyond. It is well recognised that our national parks are a much valued and utilised resource both for the national population and for tourists. The NPWS will strive to ensure that these facilities continue to attract visitors and it will provide the highest level of visitor facilities possible within the current financial and staffing restrictions.

In making the hard choices required in the current economic circumstances, the 2009 Supplementary Budget Statement was prepared in a responsible way. It will protect environmental and economic sustainability while protecting the most vulnerable of our society. The choices have been hard but the Government is resolute in its determination to put our public finances on a sound footing for the good of the country and our future prosperity. My party's involvement in Government is to the public good. We are in Government to achieve the policies for which we stand. The Green Party has clearly demonstrated its capability in Government of facing up to huge challenges whose likes have not been seen for generations. I and my colleagues are firmly committed to securing our policies into the future.

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