John McGuinness (Carlow-Kilkenny, Fianna Fail)

There has never been a time in the history of the State when people were more geared towards reform of one kind or another and addressing all the outstanding issues we might have tolerated in a time of plenty. In a time when there is far less there should be this type of reform and people would accept it, provided we set out our stall and explain to them where we are going, how much it will cost to get there and the timeframe. That leadership is now more necessary than ever.

A more extensive Bill dealing with reform of local government would have been a welcome development. The report of an bord snip nua became available today. Perhaps it is time to look at outstanding matters and at where reform is necessary. Having listened to Members who have experience of local authorities, it is obvious that the demand for reform of the local government system is more relevant and more necessary than ever. The Better Local Government package, which is in place, is not working.

I understand that Fine Gael accepts the Bill in principle. This change needs to be made. I accept the argument about self-catering holiday homes. The Bill will be passed and the charge will be applied. It is essential that we establish how the amount will be increased and ensure that it will not be substantially increased automatically year by year. It will be applied to every home and will affect those people who own their homes.

We need to examine the entire rates system. In a previous debate, I referred to the valuation system. Businesses are paying rates on valuations established at the high end of the market. They are unable to pay the rate. New businesses which are paying on that higher valuation will run into serious difficulty in the course of this year. While we debate competitiveness in the economy, we cannot overlook the fact that some competitive difficulties come from our local government system. We need to examine the cost of making a planning application. What fees and charges are applied after the application is made, how do businesses develop thereafter and how are rates applied? There is a need to radically overhaul local government because local government charges affect our competitiveness, and this is a way of doing it.

I encourage new local authority members to examine local government charges in a new light, bearing in mind the current economic circumstances. If wages and other costs are tumbling there is no reason rates cannot be looked at in the same way. Why should they not come down? They are just another cost. They bridge the gap between what is needed in local authorities but they are applied to the smaller and smaller number of people who are in business. As councils examine their costs, we should force the debate forward by ensuring they examine how their rates are struck.

The Minister said the election of a mayor of Dublin would capture the imaginations of people. The election of mayors throughout the country captured people's imaginations but it is not understood that when they are elected they have very little power within their local authorities. If power is to be moved from central government we should give substantial power to each local authority and ensure the mayor is allowed to function independently and to drive a local economic, social and political agenda. That thinking can be applied to the mayor of Dublin and to any elected mayor. Instead of that, we are tying down mayors with bureaucratic red tape which prevents them from acting in the interests of the people and from driving the local economy. That can be easily changed. I have heard many ideas expressed during this debate which could be considered by the Minister in the context of local government reform. Regardless of what side of the House they came from, these ideas should be considered in the context of a Bill which would truly reform local authorities and give them the ability to raise funds locally, to adjust their funding or to deal with local issues.

As local authorities see their funds reduced and their ability to raise funds affected by the economic situation, the first to be hit is the person at the front line delivering services. Roads are not swept and services are not delivered to local communities. That needs to be examined. A balance must be struck between the delivery of services and giving value for money. The only way to strike that balance is to put the complete onus on the local authority to raise its own funding. Some funding must come from central government but local authorities must be given the authority and power to make real decisions at local level. Otherwise this House will become a local authority or a general council of county councils discussing local issues. A large number of Members contributed to this debate and the issues they raised were local authority issues.

We should not be afraid to reform local government. If that is not going to happen soon, we must find a way in the short term to give real powers to the mayors and chairmen of county councils so they can reflect the views of their electors. At present, members of local authorities and strategic policy committees simply sign off on the reports of managers or engineers. People are fed up with that process. They want to see real democracy and they look to this Government to deliver real change and to give local democracy real meaning.

In these changed times, we should not be afraid to bring forward legislation, even if it must come under the heading of emergency legislation, to enforce the views of the Members of both sides of this House. We are all demanding the same thing, which is change in local government.

I fought hard against the ending of the dual mandate, which was a bad step for local democracy. Most members of local councils now say that since the Oireachtas Members were removed from the authorities they have less power and less information. When we were members of local authorities there was direct communication between central and local government and we kept our local government colleagues informed. That communication must be strengthened so that local authority members are empowered to make real decisions for themselves. It should not be a simple matter of how the county manager sees things or what he thinks needs to be done.

The same business people are called upon repeatedly to raise money. I understand there are more than 1,000 local authority houses empty in Dublin. A similar number of houses are empty and boarded up throughout the country. These houses could have been allocated when the previous tenants vacated them. They are well kept houses in the housing stock of local authorities but when tenants left they were simply boarded up. Some have been vandalised and will cost a fortune to repair. We are standing over this failure and continually giving local authorities money to refurbish houses. The figure of 1,000 empty houses in Dublin is not inaccurate. Similar numbers of houses are empty throughout the country. Some action must be taken in that regard. The more money lost by not collecting rent the more must be imposed in rates, an imposition on the business people of the country. That is an unfair method of taxation.

We will create new taxes in the coming budget and we must examine the report of an bord snip nua. The board must do a full report, including a report on local authorities. If necessary, Mr. Colm McCarthy should be asked to investigate local authorities and the HSE and begin to give taxpayers real value for money. I urge the Minister for Finance to publish the report of an bord snip so that we can have a full debate on the report in the House, as we lead into the budgetary process.

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