Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank Senators for allocating time in this week's schedule of business to discuss the issue of local government reform. It is appropriate, almost 12 months from the date of our last exchange on the issue, that Members wish to revisit the subject and I am pleased to have the opportunity to update the House on developments and progress. Senators will recall that on the previous occasion we covered a good deal of ground. At that point the objective of my contribution was to frame the context of the reform debate by setting out some of the fundamentals of the local government system, the rationale for its existence, the principles we were following in implementing change, the main strands of reform and what our vision for local government might look like. I also sought and received robust and insightful views from Members on a range of issues and look forward to an equally constructive discussion today.

Since that debate it is fair to say a significant milestone was reached with the publication, on 16 October, following Government approval, of the action programme for effective local government. I take the opportunity to brief the House on some of the principal elements of the document and the implementation work being undertaken. The action programme sets out Government policy on reform across all the main areas of local government. In particular, it addresses some fundamental issues in local government structures that have been problematic for a number of years and the fact that the functions of local government in Ireland are much narrower than in most democratic states. It draws on the constitutional status local government enjoys as the second tier of government in the State and also recognises the uniqueness of local government, compared with other elements of the public service, in terms of its engagement with the public, both as citizens and consumers.

The programme is not solely concerned with correcting faults in the local government system. It is even more important to ensure local government can play as effective a role as possible in the national recovery effort and enhancing the quality of life of local communities. The programme is based on a strong rationale and purpose for local government which is expressed in a vision for the sector which states, "Local government will be the main vehicle of governance in public service at local level, leading economic, social and community development, delivering efficient and good quality services and representing citizens and communities as effectively and accountably as possible".

In keeping with that vision, the document contains a firm commitment that local government will not in the future be bypassed by the establishment of other structures of local administration outside the local government system, unless there is a compelling reason to do so. While the qualities and achievements are acknowledged in the programme, the shortcomings of the system and issues that need to be addressed are clearly and frankly identified. The system is often seen - correctly - as outdated, with anomalies, inconsistencies and other deficiencies.

For example, there is a disparate array of authorities, many lacking the scale or resources to support significant functions. Some small towns have their own council while larger towns have no municipal status. Elected bodies have limited revenue-raising powers and as a result restricted accountability, responsibility and self-reliance. Operating arrangements are often fragmented, with duplication and diseconomies; and systems of governance, performance measurement and public engagement have lagged behind modern best practice.

The programme identifies the need to address these and other weaknesses, enhance capacity and improve performance across the entire system. This involves reform of all of its key elements - structures, functions, resources, operational arrangements and governance. Local government structures are a key focus of the reform programme, with the emphasis on strengthening, modernising and streamlining them. We confirm that the city or county will continue to be the core element of local government. However, the system will be strengthened by unification of authorities in some areas, while fully maintaining county identities. As Senators are aware, this process is well under way in counties Limerick and Tipperary. Reports by the implementation groups in those areas have been published. As I commented when the report of the Limerick group was published at the end of 2012, it sets a standard for local government reform, for example, in terms of organisational and management streamlining and that action being taken in the context of unification to achieve economic transformation, which my Department has strongly supported financially and otherwise.

The Government has also decided that Waterford city and county councils should be combined to form a single strong local authority and an implementation group has been appointed to oversee and guide the reorganisation process in that county with a mid year completion target. I look forward to the positive results from local government unification in Waterford - to which Senator Cullinane does not look forward - not least in terms of economic and social revitalisation of the area as is happening in Limerick. At regional level the Government has decided to retain a regional dimension in the local government system with significant structural consolidation, including a reduction in the number of authorities and assemblies from ten to three and in membership from 290 to 62. Functions will be revised and updated, regional bodies in future will perform an enhanced function in the formulation of regional, spatial and economic strategies.

All relevant agencies will be required by legislation to participate in this process and to adhere to the adopted strategies in performance of their own functions. Many of the existing regional functions, including the role of regional assemblies on EU programmes, will be retained but updated as appropriate in light of experience to date. The new regional structures will also be used for the adoption of strategies in sectors other than the spatial-economic area and there are already indications that the new regions will be used as the basis for the development of strategies in relation to sectors such as waste and river basin management. Overall therefore, the new system of regional governance will bring a greater coherence and continuity to development in and between regions.

The aspect of the programme that has generated most attention in the media and in council chambers is the new system of municipal governance at sub-county level. There has been some predictably strong reaction to the loss of double representation in towns although I have been equally criticised by some commentators for not going far enough. Perhaps these contrasting reactions indicate that we might have got the balance right. This element of the reform programme is not about abolition, as some commentators seek to portray it. Yes, the isolated tier of town council local government, as we know it, will no longer exist. It will be replaced, however by a new model of municipal governance which will address current weaknesses and anomalies. Municipal districts will cover the entire territory of each county, providing equality of representation to all citizens, which reflects European norms, uniting towns with their hinterlands, removing outdated boundaries and ending the anomaly I referred to earlier of small towns with municipal status while much larger centres have none.

Elected members will perform more important community focused reserved functions at district level on a fully devolved basis and very importantly without duplication at county level. Municipal districts will have significantly greater powers than the current area committees. The latter are consultative or advisory arrangements. They do not have statutory or decision making powers, whereas municipal districts will have such powers. The member will decide a range of important matters at district level and will have full powers in this regard. They will generally decide matters without reference to the county council, subject to consistency with overall policy, for example, the development plan.

Examples of matters to be dealt with at a district level also include policy and regulatory functions in areas such as planning, including local area plans; housing, for example, housing service plans; the annual programme for local roads; and traffic by-laws, for example, parking charges. In the environment, recreation and amenity areas matters such as litter management plans, by-laws and action to promote the interests of the community will be decided on at municipal level. With regard to relevant finance and governance matters, decisions on policy at district level will be the order of the day, requiring the manager and chief executive to act and levy certain charges. There will be representational oversight functions at district level, civic and ceremonial roles and citizen and community engagement and leadership. The action programme makes it clear that the initial reference point in determining functions for district level will be existing town council functions. Unless a function requires to be decided on the basis of county-wide implications, it should, in principle, be considered as suitable for decision within the municipal district jurisdiction. At the same time, administrative and operational aspects of the executive will be integrated at county level. The primary objective is to create a modern, effective, accountable and cohesive system of local government in which a range of important decisions will be made by elected members at sub-county level in structures that will apply across the entire territory of a county. The effect of this innovative approach which has received scant attention amidst all the noise about abolition will be to enhance significantly both democratic leadership and accountability, on the one hand, and operational efficiency, on the other, within a far more cohesive and integrated system that will reflect the realities of the 21st century rather than the 19th.

In support of sub-county restructuring, I established an independent statutory committee on 15 November 2012 to carry out a local electoral review, on which the new municipal districts will be based. Criteria and parameters for the new sub-county system are set out in the action programme and reflected also in the committee's terms of reference. The electoral review will also have a specific goal of achieving a better balance and consistency in representational ratios, while taking particular account of factors such as the location of towns and local identities in the new municipal governance arrangement.