Mary Butler (Waterford, Fianna Fail) | Oireachtas source

I thank the Deputies for raising the matter and I am sure the Leas-Cheann Comhairle will be very interested in the response as well.

The system of municipal districts as a sub-county level of governance and decision making was introduced as part of the reforms brought about by the Local Government Reform Act 2014. These reforms provided for the dissolution of 80 town councils and the establishment of 95 municipal districts in their place. Within the local authority budget process, municipal districts consider draft budgetary plans before the plenary budget for the wider council, although different arrangements apply in city councils, where there are local area committees rather than municipal districts.

Following consideration, municipal district members may adopt the draft budget with or without amendment. The input from the municipal district members is important to the overall budgetary process and the chief executive of the local authority must have regard to any plan adopted. However, if a municipal district does not adopt a budgetary plan, it does not prevent the continuation of the plenary budget process at county level.

The plenary budget process for local authorities across the country is now under way and I understand Galway County Council will hold its initial meeting on 29 November. The council has 14 days available after that date to adopt a budget for the year ahead and this is among the most important decisions the elected members of local authorities are required to make. The adoption of a sufficient budget that balances local resources with local needs is a key statutory obligation of elected members.

Critical to an effective and self-reliant system of local government is the management of local government finances to support the functions provided. Local authorities have been notified of allocations from various funding Departments and agencies and it now falls to members to consider their overall resources, including how their income from commercial rates, goods and services and the local property tax can be allocated within the authority.

While it is unfortunate that the municipal district members have seemingly not adopted budgetary plans, the Department of Housing, Local Government and Heritage has not been advised of that. I advise all members to focus constructively on the forthcoming plenary budget to ensure that a budget is put in place for next year. The elected members have legal responsibility for adopting the annual budget and are democratically accountable for all expenditure by the local authority. They must make informed and necessary choices as part of this process. Failure to adopt a plenary budget and determine an annual rate and valuation would be a clear contravention of a council's statutory functions. The Minister notes that Galway County Council has not applied an increase in local property tax for a number of years, nor has it increased commercial rates since 2009. Had Galway County Council availed of the opportunity to raise local property tax by 15% for 2022, it would have benefited from an additional €2.2 million. While such decisions are the democratic rights of the elected members, they must be prepared to take the necessary decisions on the other side of the equation. Comparable counties along the western seaboard have raised the local property tax rate for next year. Clare, Limerick, Donegal and Sligo have raised the rate by 15%, Mayo by 10% and Kerry by 7.5%. Leitrim and Roscommon also raised the local property tax by 15% for next year. Galway County Council is among the exceptions, yet seeks extra funding from the centre.

As stated, it would not be appropriate to increase the funding for Galway County Council only, particularly if the members are reluctant to use local revenue-raising powers. Such an approach could undermine the very principle of local decision-making and would effectively seek to transfer the responsibility for difficult decisions elsewhere.

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