Phil Hogan (Carlow-Kilkenny, Fine Gael)

Deputy Higgins will have to answer that, not me.

The Government is not solely focused on local government funding issues. We are also seeking to ensure that local government delivers the services that our communities expect as efficiently and cost effectively as possible. I will ensure that the proceeds of the household charge will be put to the optimum use in delivering local services on the ground. I am determined that local authority cost bases will continue to be rigorously examined and reduced to maximise efficiencies which, in turn, impact positively on business. The realisation of the savings and other efficiencies identified in the local government efficiency review group report will involve implementation over a focused timescale. In this context I established, earlier this year, an implementation group with an independent chair and business expertise to drive and oversee implementation of relevant prioritised recommendations of the report of the local government efficiency review group.

The implementation group is focusing on key recommendations in areas such as shared services, procurement, ICT and human resources that will remove costs and yield early financial savings for the local government sector. I am due to receive the implementation group's first report this month and this will include an assessment of progress made to date. We must also be cognisant of the reduction of over 6,500 staff posts in local authorities over the last few years - well ahead of any other area of the public service. This is one of the biggest contributors to efficiency and productivity in local authorities.

The Government's commitment to align the community development sector with local government will also see an expanded role for local authorities in local enterprise and community development. This, in turn, will maximise the impact of investment to produce jobs at a local level. My Department will continue to work with the County and City Managers Association to identify best practices in the local government sector, in building stronger sectoral approaches and in eliminating variances between local authorities.

I take this opportunity to refer briefly to another issue that is equally important to the well-being of the local government sector. A range of work relevant to the reform and development of local government is also under way, in accordance with the programme for Government, and significant progress has being made. On structural reform, the Government announced, on 28 June 2011, its decision to create a single local authority to replace Limerick city and county councils with effect from the local elections in mid-2014. In addition, the Government decided to establish a unified county council in Tipperary, also with effect from the next local elections. Implementation groups have been appointed to oversee planning, preparatory work and initial implementation of the reorganisation process in both Limerick and Tipperary and their work is proceeding. I have also established a local government committee to consider whether the creation of a unified authority in Waterford would be desirable and that committee is also in operation and is due to report to me by the end of February 2012.

These measures are being progressed ahead of more comprehensive policy proposals which will be brought to Government on local government structures at regional, county and sub-county levels. The local government sector is a willing and able partner in this agenda and recognises that public sector transformation is an integral part of the solution to Ireland's current economic problems. In this context, greater coherence and synergy between different levels of Government and the public service are fundamental to more efficient and effective operation. My Department and the local government sector are working closely together to advance broad public service initiatives for a more integrated public service which can achieve better value for money and enhanced customer service.

The Local Government (Household Charge) Bill 2011 is a short and straightforward legislative instrument. The Bill establishes a new funding source for local authorities. The revenue stream to which it will potentially give rise is significant, at €160 million annually. It builds on the experience of the charge on non-principal private residences and further broadens the revenue base of local authorities. Household charges raised nationally will be put to good use locally in providing the wide range of local authority services that the public needs and expects. The household charge is an interim measure and it will be replaced by a full property tax in due course. The Government has decided that an expert interdepartmental group will be established in the new year to consider the approach to the full property tax and report back to me by the middle of 2012.

No Government wants to be in the position of having to introduce new taxes or charges on a public that has been subject to austerity measures over recent budgets. We are in a difficult financial situation and we have to take the necessary action. The household charge is one of the steps along the path to economic recovery. It is also required under the EU-IMF programme of financial support, a programme entered into by the previous Fianna Fáil-Green Party Government. The legislative measures in the Bill give effect to one of the major requirements of the EU-IMF programme.

I thank Deputies for their co-operation in facilitating early consideration of the Bill and I commend it to the House.

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