David Cullinane (Waterford, Sinn Fein) | Oireachtas source

A total of €18.4 million in cuts to councils in Dublin and Waterford are on the way due to the Government and Irish Water. This is because the Minister for Public Expenditure and Reform will no longer fund the commercial rate compensation scheme. Because of this, Dublin City Council will take a hit of €8.7 million while Waterford City and County Council will see a 13.5% drop in rates - €3.3 million - and is proportionately the worst hit council. South Dublin County Council will lose €4.1 million while Fingal County Council will lose €2.3 million. Let us be very clear. These are Government cuts plain and simple. They are not cuts by the councils themselves. Let us be equally clear that these cuts are unsustainable. They place a burden on those local authorities that cannot be met. We are hearing that from the CEOs of those councils but also from councillors across the political divide.

The compensation from the Department that was in place is now abolished, leaving those councils, which are badly affected, high and dry. On Monday night, Dublin city councillors refused to pass a budget because of these cuts. How could they pass a budget which proposed, for example, increasing council rents, commercial rates on small businesses and toll charges? All of this would have a serious effect and negative impact on householders, older people in their homes and small businesses already struggling, as well as commuters forced to drive because of a failing public transport system. The chief executive of Dublin City Council said these cuts had to be made because the council was not being compensated by the Government, despite promises made. I have spoken to the chief executive officer of Waterford City and County Council and he has the same view. This is a Government cut. Promises were made to compensate these local authorities but they have been left high and dry.

In Waterford City and County Council, the proposed budget may include cuts in funding for housing maintenance, roads, festivals for local communities and an increase in commercial rates of up to 10%. That is unsustainable. People were told when they paid their property tax that the moneys would be used to fund proper services, yet people in Waterford and Dublin will see services cut through no fault of their own.

My simple question is this. We need obviously to have a debate on how we fund local government. In this particular instance, given that these local authorities have been so badly hit and given the impact this will have on people in Dublin, Waterford and other areas, will the Government commit to restoring the compensation given to local authorities to ensure they do not have to take the axe to services, which is what they are being asked to do? Sinn Féin councillors will not do that nor will they clean up the mess created by the Tánaiste’s party. I implore him to do the right thing and restore funding to these local authorities.

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