Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

Yes. It may not be that amount but it absolutely cannot exceed the ¤150 million limit. In response to Senator Landy, the Government decided to introduce the local property tax this year. When one talks about funding local government, the critical issue is the powers given to elected members of local government. I spent 27 years in local government as an elected representative.

Like the Senators I am well versed in the powers and efficiencies of local government. An important plus in the property tax legislation is that locally elected councillors will be in a position to increase or decrease the budget by up to 15% from 2016 onwards. The provision will be a big issue next year during the local elections and councillors will have to prove how well they will manage the accounts for councils. The provision will give more powers, responsibility and authority to elected members. It will not simply be a matter of asking the county manger to do this, that and the other. He or she will inform a councillor that he or she has the power to grant approval. The provision will grant more authority to local representatives and give an opportunity for more efficiency. Local representatives will be in charge of what is happening. I have no doubt the next local election will dwell on efficient, responsible and accountable local government. Obviously the successful councillors will also have persuaded the electorate that they are the best.

The Bill will ensure the local government fund will benefit to the tune of ¤960 million. The sum will not cover everything we would like to do. I am aware of the needs of communities and the provision is the best that we can do at this time, given the very difficult position that we are in.

I know that in Senator Landy's county of Tipperary the Government has decided to create new efficiencies. The merger of Tipperary North Riding and Tipperary South Riding council councils will result in a more efficient, streamlined and effective council. Costs will also be significantly reduced along with the number of councillors. The legislation will mean local government will be more accountable and I hope that will mean more efficient. Mergers are happening elsewhere such as in counties Limerick and Waterford.