Robert Dowds (Dublin Mid West, Labour)

I am pleased to speak to the motion. As the previous two speakers demonstrated, commercial rates are only one small aspect of a debate that needs to take place on local government reform. With funds drying up from sources such as development levies which Deputy Ann Phelan mentioned, councils are more dependent on commercial rates, even though there is less money available for services. The points made by her and Deputy Deering concerning the problems that arose from the decision to abolish rates in 1977, unfortunately, are correct. Their abolition cut the legs from under local authorities, which was a great pity because the more decisions that can be made at grassroots level, the better for society. It is important, therefore, that we do our best to introduce reforms. In looking through the figures for last year I noted that 13 of the county and borough councils had managed to reduce commercial rates to some degree. While that was probably not enough, it was a start. The issue needs to be tackled on a broader basis.

Another main source of funding is the local government fund which incorporates motor taxation receipts. When Deputy Howlin was Minister for the Environment in the mid-1990s, he introduced this fund which he ring-fenced for local authorities. However, all of the money does not necessarily go to the county council which collects it. There are four county councils in the Dublin metropolitan area. South Dublin County Council, the council for the area in which I live which has a population of about 250,000, receives €24.3 million from the fund. At the other end of the scale, County Leitrim has a population of 31,000. However, its county council receives more than €14 million, despite the fact that the county has a much smaller population than the South Dublin County Council area. Although there are reasons for this, it is important that there be equity. My county council area which has almost the exact same population as the Fingal County Council areas receives, as I said, €24.3 million from the fund, while Fingal County Council receives almost €30 million. I ask the Minister to examine this issue to try to come up with a more equitable arrangement.

A €100 charge is to be introduced. It is important that the money raised go directly to the council areas in which the people who will pay it live in order that they will be able to benefit from it. It is difficult to get even small jobs done in council areas, whether it be the pruning of trees, the jetting of shores on roads which was necessary at the time of the floods in Dublin, or minor repairs to footpaths.

Overall, there is a serious point made in the motion, but it is only touching on a major issue, that is, the crying need for major reform of local government.

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