Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

I hope I did not put him off his stride. It is not a small thing to produce legislation, on which I congratulate the Deputy.

I welcome the opportunity to discuss important issues relating to the local government system, to hear the views of Deputies, and to share with the House some initial thoughts on the future of local government in Ireland.

The Government's Action Programme for Effective Local Government - Putting People First, which was the platform for the wide-ranging reform programme implemented in 2014, set out an ambitious vision for local government to be "the main vehicle of governance and public service at local level - leading economic, social and community development, delivering efficient and good value services, and representing citizens and local communities effectively and accountably".

I intend to further that objective, building on the significant improvements that have been made in recent years. The next stage in that process will be a report to Government and the Oireachtas under the Programme for a Partnership Government on potential measures to boost local government leadership and accountability, and to ensure that local government structures and responsibilities strengthen local democracy. The programme signals this process as the next wave of local government reform and also indicates specific issues to be considered, including reducing the size of local electoral areas and the question of town and borough councils. I will receive this report in July and I will be able to consider it in detail and bring it to the Oireachtas in September.

To achieve the vision set out in the 2012 policy document, the structural framework must be fit for purpose. Accordingly, a core element of the reform programme was structural reorganisation, involving the unification of certain city and county councils, and replacing 80 former town councils by municipal districts integrated with the county councils in a new, innovative system of governance.

Outdated boundaries and other anomalies have been removed. I believe the new system provides more effective and community-focused decision-making and implementation. There is full integration of local authority resources across each county, and elimination of duplication both in administrative and electoral terms.

The new municipal district system is also closer to the European norm, which Deputy Cassells referenced, covering the entire territory of each county, in contrast with the previous unbalanced arrangement of isolated town councils, while rural areas, many town environs and some larger centres lacked municipal status and local governance. A 2013 Council of Europe report, which was referenced by Deputy Cassells in his Second Stage speech, specifically welcomed the decision to replace the town council system by the new municipal district arrangement, particularly because it ended the dual franchise in towns which the Council of Europe report described as unfair.

An important benefit of the new system is a more appropriate assignment of local authority functions. Local matters are dealt with at municipal district level, while those of wider strategic application are decided at county level, without duplication between county and district jurisdictions. In effect, there is now a dual system of governance but an integrated administrative structure in each county which maximises operational efficiency while ensuring devolved decision-making throughout the county.

The Bill has technical flaws, particularly the fact that it is linked to repealed provisions of the Local Government Act 2001. Substantial redrafting would be required if it were to progress. However, there are more fundamental issues in principle with the Bill, as follows. The Bill would pre-empt consideration by Government and the Oireachtas of the report on local government matters to be submitted under the programme for Government. As I mentioned, that report will come to me next month and to the Government and the Oireachtas in the autumn.

In so far as there are shortcomings and scope for improvement in current local government arrangements, these matters can, and will, be addressed without resorting to the re-establishment of a multiplicity of town councils. Unfortunately and ironically, the commission proposed in the Bill would probably impede improvements such as the review of local electoral areas which needs to proceed this year to be ready for the 2019 local elections. I do not want anything to delay this important work.

The most fundamental problem, however, is that the ultimate purpose of re-establishing town councils is basically lacking in justification and, notwithstanding the good intentions of its sponsor, is ill-advised on a number of grounds. First, the arguments that have been made for restoring town councils, such as lack of investment by local authorities in towns, are not generally supported by facts.

Moreover, there is little evidence of general support for reverting to the town council system among councillors. The Association of Irish Local Government, which represents councillors, has expressed the view that a legislative measure would be premature in advance of any review of the efficacy of the 2014 reforms. While proposing that the funding requirements of municipal districts containing towns experiencing growth pressures be examined in the interim, the AILG view is that it would seem sensible that any structural review should await the completion of the current electoral cycle so that the 2014 reforms could be assessed fairly.

Reversion to a town council model would not be compatible with the new system of local governance introduced in 2014. As a result, the significant benefits which the new municipal district system has brought about would be reversed and the opportunity for the new system to develop and improve would be lost. An operational review of the new structures was completed in 2016, informed by surveys of both elected members and the local authority executive. This provides a strong evidence base for policy development.

The survey responses indicated a strong consensus that the new municipal district system has resulted in significant improvement on the previous system, with capacity to deliver further benefits as it matures and fully settles over a complete council cycle, and that radical change should not be pursued before the new arrangements have been allowed time to bed down fully.

I do not suggest that the current arrangements are perfect. Some shortcomings, particularly related to the excessive size of many electoral areas, were identified in the recent surveys, and potential improvements suggested. These matters will be addressed in the forthcoming report. Work on the report is well advanced and it is expected to be submitted to me by the end of July, with a view to submission to Government and a full debate in the Oireachtas in the autumn.

The question of town councils and the related issue of local electoral areas have been given particular priority because they are central to the reforms introduced in 2014. The implications of various approaches have been rigorously considered along with potential measures to reinforce the effectiveness of the 2014 reforms in light of the operational review.

The most fundamental question to be considered is what shortcomings exist in the current arrangements and to what extent they are likely to be addressed by re-establishing town councils or by some alternative approach. On the basis of detailed consideration to date, but without pre-empting decisions on the forthcoming report, it is evident that the most appropriate approach would be to retain the current municipal district system but strengthen it with measures to enhance the role and status of the municipal district members, and reconfigure the local electoral areas to reduce excessively large areas and designate more distinct urban electoral areas.

The powers and functions of municipal district members can be enhanced in a number of respects, with particular emphasis on strengthening their financial role and their capacity to promote the economic and social development of towns. Other measures can be implemented to improve the operation of the system generally, including ensuring that the new arrangements are being operated fully in all areas, for example, the range of functions performed at municipal district level.

Important features of the current system which have proved to be clearly beneficial should be retained, notably, a single, integrated county-wide executive, operational structure and resources; a unified representational and electoral system, with all county level members being members also at district level; a single statutory authority for each county, embracing the county and its component districts within one corporate legal entity, with appropriate roles for the elected members at district and county levels, respectively, and sub-county governance arrangements for all areas of the county, rural and urban, unlike the former unbalanced town council system. The retention of integrated governance arrangements, particularly with more distinctly town-based electoral areas, will also support objectives in the context of the national planning framework.

In summary, there were compelling reasons for replacing town councils, which still apply. There is limited demand for reversion to the pre-2014 system. The new arrangements are generally working very well and are expected to produce further benefits, albeit with scope for improvement in some aspects, which will be addressed in the forthcoming report to Government under A Programme for a Partnership Government.

In conclusion, I pay tribute to Deputy Cassells for his commitment to local government and local government reform. I will take note of his input and that of other Deputies as we progress the report under the programme for Government. I look forward to future engagement with the House in that regard. However it would not be appropriate to pre-empt consideration by Government and Oireachtas of all the local government matters which will be dealt with in the forthcoming report. If, following consideration by Government, a commission on local government matters, as proposed in Deputy Cassells' Bill, is warranted, that could, of course, be pursued, but it should not delay changes that are clearly desirable such as the reconfiguration of local electoral areas. Accordingly, in the event of the Bill passing Second Stage I would intend bringing forward appropriate amendments, but I do believe it would be premature at this point to progress the Bill further until such time as we in the House can examine the outcome of the current review, which I hope we can do in September.

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