Catherine Murphy (Kildare North, Independent) | Oireachtas source

In theory the Minister is right but in practice we can see how the Local Government Fund works. The Minister made reference to the Local Government Fund rather than the property tax because that will be diverted to Irish Water. The money will be coming out of the Local Government Fund, which is the motor tax fund. It is all put into the one fund and therefore we are unsure which part of it comes out, but the Minister is telling us it will come from the motor tax fund. Basically, a commitment has been given about the extent of what will be delivered to local authorities in the context of the amount of money collected from the property tax. However, we do not know how much will be taken from the Local Government Fund. For example, money has been taken each year from the motor tax fund to go to the Exchequer.

There is a major level of expectation among people about service delivery because they are paying the property tax. They will be looking to see what exactly they are getting for their money. If there is no commitment to give 80% to local authorities, the level of discretion at municipal level will be low. Precisely what the Minister is trying to achieve in terms of service delivery will not be achieved if at least 80% of the property tax does not go to the local areas. It seems that the commitment has been rowed back on. Essentially, that will be the real meat. Rather than a nice plan, the actual delivery of services and the commitment to the delivery of additional services will be the key to whether the changes in local government will be seen as a positive initiative. It is not only about the plan, it is about the money behind it and the philosophy behind where that money comes from.

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