Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank Deputy Deasy for the opportunity to set out the position on local government reform in the context of rates and the difficulties small businesses currently endure, and also the need to provide clarity on the matters raised.

The action programme for effective local government, Putting People First, which was published on 16 October 2012, sets out Government decisions on a range of measures relating to local government structures, functions, funding, governance and operational matters. Chapter 6 of the programme sets out policy decisions to replace town councils with a new comprehensive model of municipal governance based around principal towns to strengthen local government within counties and address weaknesses and anomalies in the current system. Key features of the new arrangements are also detailed, including governance, civic roles and an indicative listing of reserved functions of elected members at municipal district level.

Implementation of the reform programme is proceeding on a number of fronts. The local electoral area boundary committee has been reviewing local electoral boundaries, having regard to the results of census 2011 and the policy decisions announced in the action programme. The committee is to report no later than 31 May 2013 and its recommendations will provide the basis for the configuration and membership of the new municipal districts. The action programme for effective local government indicates that in the context of reorganisation of local governance structures, the proposed new municipal districts will provide an opportunity to achieve a more coherent approach to rates and charges on a county-wide basis, having regard to funding requirements and the need to support employment and business competitiveness.

The programme proposes rates harmonisation to cater for differences between annual rates on valuation, ARV, of towns and counties. My approach to rates harmonisation will seek to ensure harmonisation does not lead to any increase in commercial rates in any county. Accordingly, I assure Deputy Deasy that the purpose of savings that will arise from the merger of the two local authorities in Waterford is to reduce the cost of providing services to businesses and consumers. The levying of commercial rates, which Deputy Deasy is aware will be a matter for councillors elected after the next local elections, is a reserved function of councils. There should be no increase in commercial rates in Dungarvan arising from the merger of both local authorities. If it is the will of the councillors to do otherwise, that will run contrary to my policy.

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