Pat Deering (Carlow-Kilkenny, Fine Gael)

Like my colleague I would also like to refer to 1977, when a Fianna Fáil Government, led by the then Minister for Economic Planning and Development, Martin O'Donoghue, wanted to buy an election and decided to eliminate household rates. Since then local government has suffered drastically. At that time the total amount collected in local rates was £78.7 million, which equates to €460 million today. If we had such an amount of money to put into local government today we would not have our current problems.

Since 1977 commercial rates have been totally unbalanced and unfair and they affect only a very small section of society. That situation has to be addressed. The household charge is a very important first step in the reform of local government which since 1977 has become totally undemocratic. Local councillors have very little power and it is essential that they get back the power they deserve.

Local councillors should be in charge of the funding they raise and should be able to allocate funding in their local areas. This is an important first step in restoring power. The reform of local government has to move onto the next level. Certain town councils have become irrelevant and their abolition is an important step.

It is amazing that Sinn Féin, which as Deputy Lawlor mentioned is notable by its absence, has not been afraid to introduce stringent cuts in the North totalling £4 billion. The household charge in the North is, on average, €1,500, compared to a proposed charge of €100 in this jurisdiction. As has been mentioned it is an interim measure for a short period of time. As Deputy Lawlor said, an equitable system will then be introduced but not at the same level as the North. The Sinn Féin Deputies, who are absent, have no problem supporting cuts in the North but it is hypocritical to criticise and vote against cuts here.

Margaret Ritchie, an SDLP MLA said

Sinn Féin's position is totally unsustainable. The Sinn Féin socialists have waved through £4 billion in cuts in Northern Ireland without as much as a whimper while pretending there is an alternative to the inevitable cuts in the South. The position of that party can be summarised thus: in the North as Green Tory and in the south it is a different story completely.

I commend the Minister for his reform policies in local government. This is an important first step and I look forward to more steps in the months to come.

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