Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 10: To ask the Minister for the Environment; Heritage and Local Government when the local government white paper will be published; when the review group on local government expenditure will report; and if he will make a statement on the matter. [22385/10]

Emmet Stagg (Kildare North, Labour)
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Question 203: To ask the Minister for the Environment; Heritage and Local Government when he will bring forward the White Paper on Local Government [22571/10]

John Gormley (Dublin South East, Green Party)
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I propose to take Question Nos. 10 and 203 together.

I published the Green Paper on local government, Stronger Local Democracy - Options for Change, in April 2008. That was followed by an extensive programme of national consultation for purposes of informing the preparation of the White Paper on local government. The environment has altered considerably since April 2008, not least due to the severe economic downturn. Work on the White Paper has also had to have regard to the report of the Commission on Taxation, the Report of the Special Group on Public Service Numbers and Expenditure Programmes, and the renewed programme for Government.

A dedicated Cabinet committee is finalising the major strategic issues for inclusion in the White Paper, which will be published as soon as possible following the completion of the committee's deliberations. It is essential we get the White Paper right, that it is grounded in today's challenges, contains appropriate ambition and will be readily implementable.

I have put other significant local government initiatives in place in recent months. I established the Limerick Local Government Committee, to prepare a report on the most appropriate arrangements for local government for the city and county of Limerick. I have published the general scheme of the legislation to provide for the mayor for Dublin. I also established the Local Government Efficiency Review Group and I have requested that it complete its work by mid 2010. I have asked the group to review the cost base, expenditure and numbers employed in local authorities with a view to reporting on specific recommendations to reduce costs, the effectiveness of particular programmes, optimal efficiency in the way programmes are delivered and any other proposals to enhance value for money in the delivery of services at local level. The group's findings and recommendations will then be considered in the appropriate policy and financial contexts. Collectively, these initiatives will be of great importance to the future of the local government system and its stakeholders.

Joanna Tuffy (Dublin Mid West, Labour)
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Is the local government expenditure group another version of the bord snip report? Local authorities are very hard pressed. They have lost many staff and many of them are struggling financially. It would be worrying if the intention were to have a similar type of exercise to the earlier McCarthy report.

John Gormley (Dublin South East, Green Party)
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If one wants to put it in those terms, I looked at what McCarthy had done and I felt it was necessary to carry out an efficiency review of the local government sector. Deputy Tuffy will have seen the recent reports about the failure to collect commercial water rates. It is absolutely essential that we get the full value for the €11 billion, current and capital, spent annually by local authorities. That must be viewed against the requirement to manage and control overall public spending, having regard to the need to restore balance in the public finances. While much has been achieved to date such as the new costing system, shared services, modern financial management system, audit committees and performance indicators, more must be done. The focus will be on current spending by local authorities. The group will address capital expenditure issues to the extent of their impact on current expenditure. I met with the group, whose work is ongoing. It is absolutely vital we deal with this issue because we have had local authorities spending money in the good times but we are no longer in the good times and we have to tighten our belt, not just at central level but at local level as well.

Joanna Tuffy (Dublin Mid West, Labour)
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The Minister needs to be careful that he does not wipe them out of existence entirely. They have had to cut their budgets so much that they are really stretched as they try to do important work. I wanted to make that point.

John Gormley (Dublin South East, Green Party)
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One of the things I did not mention in my response was the introduction for the first time of a tax on second homes. I recall vividly that when it was introduced, Deputies on the Opposition benches said we would be lucky to collect €20 million. In fact, we have collected up to €63 million very quickly. It has worked efficiently. I do not think the local authorities can complain because we have been as generous as we can, in the current circumstances. When the pay reduction was imposed, they were allowed to retain a substantial amount of it.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Some 60% of it.

John Gormley (Dublin South East, Green Party)
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We have been and will continue to be enormously flexible with the local authorities on every front.