Paschal Mooney (Fianna Fail) | Oireachtas source

I find the Government's policy on local government finance contradictory. On the one hand, the Minister of State said there is ¤960 million. I ask him please to correct me if I am wrong about the following. Legislation was introduced some years ago to ring-fence that amount of money which meant the Government could not touch it. I am inclined to believe that happened. Otherwise he would not be tabling a section to permit the transfer of funds from the local government fund.

Some weeks ago the Minister for Transport, Tourism and Sport announced that he would provide an allocation, somewhat small admittedly, towards the maintenance of local roads. Earlier in the year I attended a committee meeting where the National Roads Authority stated its concern about a reduction in funding for ongoing road maintenance. Earlier today the Minister of State, Deputy O'Dowd, pointed out his distinguished record in local government but Senator Landy and I have also served in local government. I would hate to see a repeat of the situation that developed in the 1980s during the last economic recession. There was a severe reduction in funding for the roads network and it took almost 20 years of successive governments and successive Administrations to right that wrong. There was no money in the kitty then and we are in the same situation now.

The Government must have a vision of the future and it simply cannot make a decision to cut funding just because we have no money. All of the indications are that European Governments are moving away from austerity policies. The Italian Government is worse off than we are, relatively speaking, but it is talking about using money to invest in state projects, to develop infrastructure and whatever. I have seen the damage done by a severe reduction in funding for local authorities and that is why I have a severe difficulty with the same being done now. The Government needs money from wherever it can get it but it is a pity to seek assistance from local authorities again. On the other hand, the Minister of State spoke in glowing terms, and rightly so, that local government will be more efficient, have more powers and whatever after the next local election. Those powers will be of no help if local authorities have no money or their funding is reduced.

The Minister of State made the point that local authorities will be empowered but let me give an example of a contradiction. The local improvement schemes were vital, especially in rural Ireland. Some months ago it was announced that the scheme would be re-introduced, which was welcomed by all sides. It transpired, however, that local authorities could only introduce the scheme if they shifted money from another heading. There was no increase in funding.

Local government funding is vital for the fabric of society and I mean in that in the physical sense. As the money will be used primarily on the road network, can the Minister of State assure the House that the Government will not take its eyes off the ball despite all the fiscal pressures? I want him to give an assurance that the Government will find the money and resources elsewhere. Otherwise, the next generation for the next decade will face the same problem of having to take remedial action to repair the roads at perhaps double the cost, as happened in the mid to late 1990s and well into the 2000s.