Dáil debates

Thursday, 8 March 2012

Priority Questions

Local Government Reform

5:00 pm

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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Question 5: To ask the Minister for the Environment; Community and Local Government when he will bring the policy proposals for an action plan on local government to Government; if it is his intention during the lifetime of this Government to introduce substantial and meaningful reforms in this area in view of the centralised nature of governance here; if it is his intention to tackle the over centralised nature of Government here; and if he will make a statement on the matter. [13414/12]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Work is proceeding with a view to bringing policy proposals to Government at an early date on the reform and development of local government in accordance with the programme for Government. Decisions have already been taken to merge the authorities in counties Limerick and Tipperary and implementation work is proceeding. Progress reports have been submitted in both cases which present a positive account of work to date. I have also established a local government committee to consider whether Waterford city and county councils should be unified and I expect to receive its report shortly.

Building on these actions to date, I intend in the near future to bring wider policy proposals to Government for an action programme on local government, with particular focus on strengthening local government structures generally at regional, county and sub-county levels. This will include proposals for an enhanced local authority role in economic development and enterprise support, reflecting arrangements arising from the recent Government decision on the local enterprise service and in respect of the alignment of local and community development functions with local government. The programme will also incorporate proposals arising from consultations with ministerial colleagues regarding functions and services of their Departments and bodies under their aegis that could potentially be devolved to local government in the short to medium term.

The programme will also reflect other work under way on local government efficiency implementation and financing and will broadly map out further aspects of the local government system on which reform proposals will be considered. The range of action under way and proposed will form a substantial programme of mutually reinforcing reform measures which should result in stronger, more effective and cohesive local government, with greater capacity to address challenges and promote economic and social development in their respective areas.

My overall vision is for a reformed system of local government to be the main vehicle of governance and public service locally, performing as wide a range of appropriate functions as possible, as efficiently as possible as close to citizens and communities.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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As the Minister realises, Ireland has the most centralised government in Europe and one of the Continent's most ineffective local government structures. I am not sure the measures to which the Minister referred will significantly change that position. Does the Government plan to return some power to citizens? There is a substantial gap between citizens and politics. The former do not feel represented because the councillors they elect at local level have virtually no authority. Other than having a say on the development plan, most of the work of a councillor involves representation and lobbying on behalf of constituents. Does the Government have any appetite for real reform of local government to provide it with proper funding to invest in people friendly areas such as crèches, education and health, as is the case in most local authority systems elsewhere in Europe, or will this country remain among the most centralised in Europe?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I fully concur with Deputy Wallace on the centralised nature of government here. This is not acceptable, which is the reason I am doing something about it. In view of the Deputy's stance on the household charge, I would welcome his proposals on financing local government. Where will we obtain money at local level to contribute to the effective running of local government and the provision of services if we comply with the standards the Deputy has set?

I want to move many of the functions of agencies and sections of Departments to ensure services are delivered as closely as possible to individuals and communities. I have made a start on enterprise functions. My Department and the Department of Jobs, Enterprise and Innovation have agreed to devolve the community and enterprise development functions to local authority level. There is a challenge for local authorities to step up to the plate by engaging with people on the ground to ensure we get a good response to rolling out all of these services. However, these services must also be paid for. If one seeks to devolve functions and remove the centralisation of functions, which the Deputy correctly noted is a problem, one must have the wherewithal at local level for funds to be provided to implement these services and give the greatest possible discretion to elected members to implement such services at local level.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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Taxes collected at local level should be used at local level. Removing responsibility for motor taxation, driving licences, payroll and water from local authorities will mean they will have even less to do.

If the household charge was a tax on homes, we would consider it. However, someone who paid 12% stamp duty on a house purchased for €200,000 will pay €25,000 over a 25 year mortgage, which amounts to a household tax of €1,000 per annum. If the Government abolishes stamp duty for principal residences, as is the case in the rest of Europe, the notion of paying a tax on one's home would be fair. There is, however, no comparison between the position here and elsewhere in Europe because Irish people have probably paid more tax on their homes through stamp duty than any other Europeans. If the Government abolishes stamp duty on principal residences, it could be deemed fair to impose a household tax in respect of homes purchased thereafter. However, the current position is definitely not fair.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I accept the household charge is not progressive or fair and one needs to have a property tax in place, as most socialist parties in Europe would agree. I intend to bring forward proposals later this year to achieve this outcome in 2013.

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance)
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Is the Minister a socialist now?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The United Left Alliance opposes the concept of a property tax.

Photo of Robert DowdsRobert Dowds (Dublin Mid West, Labour)
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It is the only socialist party in Europe which opposes a property tax.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I want to ensure the principles Deputy Wallace outlined are implemented. I refer, for example, to the proper devolution of functions to local authority level and the proper provision of local services which can be delivered by people at local level as close as possible to the people. However, these services must also be funded at local level, which is what I am striving to do.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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If people see that services are being provided for their money, they will live with a property tax.