Seanad debates
Wednesday, 24 May 2006
Local Authority Operations: Motion.
6:00 pm
Jim Walsh (Fianna Fail)
I welcome the motion as it is timely and on an important subject. I noted the Minister's contribution and I welcome most of what he had to say. There is a need for issues surrounding these matters to be examined and dealt with in a better way than is evident to date.
I remember when the Bill relating to the taking in charge of estates went through the House in 2000 and the discussions we had on it. If I remember correctly, there is an obligation on a local authority to take charge of any estate more than seven years old, if requested to do so by a majority of people living there. I remember stating at the time that this should put an onus on local authorities to monitor the construction stage, as they could conceivably be taking on potential liabilities if the developer has not satisfactorily provided the services or if major refurbishment is required prior to the council taking over.
If this is happening at all, it is happening in few local authorities. It should be done as there can be considerable costs involved if there are issues with drainage, sewerage, roads or lights within an estate. We have all seen within our own jurisdictions, some difficulties relating to specific housing estates.
From discussing this at local authority level I know officials will contend that a private housing estate is not their responsibility. They would further argue it is up to the people requiring the houses in the estate to satisfy themselves that all the services have been installed to their liking. The de facto situation is that in a large housing estate where people are purchasing a unit for themselves, they do not have the resources to ensure everything is done properly. They depend on the developer. When one considers the conditions attached to planning, there is an onus on local authorities from a planning perspective, even before one considers the issue of potential subsequent liability when the authority takes over a development.
I note with interest that the Minister has taken up the issue of estates not being taken over by local authorities. At least 560 estates will be taken in charge by planning authorities this year. I would credit the Minister with that figure, as I am sure his letter prompted action in an area where action was not being taken. In many ways the figure probably highlights how attention was not being given to this area prior to the reminder from the Department. I am speaking generally, and there would clearly be exceptions among local authorities, as the Minister has pointed out. The action varies from authority to authority.
With regard to planning conditions relating to management companies, there has been a move in this direction. The Minister has clearly set out the issue in a letter to local authorities. With regard to the standard local authority estate, the provision of a management company should not be a factor of a planning condition. With regard to apartments, management companies will apply for clear reasons, as there are common internal areas as well external areas. The building itself would also have to be maintained. Therefore, the owners of apartments generally, informing a company to own the freehold of the property, will designate a management company to take care of those specific areas.
It may not be sufficient to urge local authorities by letter in this regard. There may be a need for a legislative framework, so it cannot be extended into the normal estates. I appreciate the point made by the Minister that there are difficulties with mixed estates where conventional housing units exist alongside apartment blocks. In such a case, the open areas and the general facilities, such as drainage and sewerage, should be the responsibility of the local authority. Ring-fenced legislation could be drafted to provide for that.
The conduct of planning officials has been raised. I am a member of a scheme where apartments were built as part of an apart-hotel. A request to change the designation of the complex to residential when the tax incentives expired was refused. The county manager of the local authority who refused the application subsequently joined a company interested in purchasing the development. I will keep a watching brief to see what transpires in that regard. Local government arrangements which allowed senior officials to exit at an early age with a lump sum have led to a trend in people joining private interests where there are obvious conflicts of interest. There is a need for effective policing of whatever codes deal with such matters.
There is a significant anomaly in a system whereby millions of euro from development contributions can be stashed away in an account and local authority members do not have a clue how much is involved. Officials have no accountability. As I know from my own experience, questions raised in this regard receive only vague responses. That should not happen because there is great potential for impropriety in that area arising from the secrecy surrounding it.
I would go further than the Minister and demand that all moneys collected from development levies should not just be accounted for in the annual report, which in many local authorities is only published 18 months or two years after the end of the year, but in the annual estimates. There should be a capital account as well as a revenue account and it should fully account for all moneys collected, as well as outline the projections for the following year. The capital projects on which the money is to be spent should also be outlined. There should be a full, transparent accounting system in each local authority, which should be easy to achieve. If a businessperson or anybody else allows laxity in a system he or she is as culpable as somebody who succumbs to the temptation to exploit it. Systems must protect employees and the public purse.
It is undoubtedly appropriate that there be a contribution from developments toward the cost of various services, such as roads, sanitation, etc. However, they must relate to the services provided and should not just be figures picked from the air. That does happen, because I remember when we had responsibility for such a development in Wexford County Council and there was a degree of horse-trading among senior officials. It was far from a scientific approach and it struck me that we needed guidelines from the Department to bring some semblance of uniformity to the area, even though I fundamentally favour each local authority being autonomous and having the right to make its own decisions.
Local government serves us well but it is important there is constant probing and prompting to ensure the best standards are upheld. In any large organisation, especially in a system not as democratically accountable as I would like, there is a need to ensure the structure and guidelines are in place so we achieve them.
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