Seanad debates

Wednesday, 9 October 2013

County Enterprise Boards (Dissolution) Bill 2013: Committee Stage

 

11:20 am

Photo of Brian Ó DomhnaillBrian Ó Domhnaill (Fianna Fail) | Oireachtas source

We can talk about it when discussing the section later.

With regard to amendment No. 3, I seek clarification from the Minister. I am told by county enterprise boards that with the transfer of powers there are additional financial responsibilities for local authorities. The county enterprise board structure is currently 100% funded by the Government but powers will be transferred from the county enterprise boards to the local enterprise offices under Enterprise Ireland and the dual functioning responsibilities of local authorities.

The authorities will be responsible for part of the financing that will be at the disposal of the LEOs. Is that correct? If so, how does the Minister of State see local authorities being in a position to fund such activities given that many of them, including the one in my county, Donegal, are struggling financially to deal even with their current responsibilities under the 2001 Local Government Act? I refer to planning, housing, environmental issues and so on. They are strapped for cash. I do not believe that putting another layer, albeit a new one, of responsibility on local authorities in regard to job-creating responsibilities, an area where local authorities have no defined function under the 2001 legislation, can work. The answer will determine whether we press this amendment. Can the Minister of State clarify whether it is stated anywhere in the legislation that this will be cost neutral to local authorities and will not cost them an additional penny? Will there be a budget of at least €40 million dedicated and available to the LEOs nationally? That is what the CEOs of the county enterprise boards have sought from the Department of Jobs, Enterprise and Innovation down the years. They require that sort of budget to fulfil their role effectively and efficiently.

I do not lay the blame on the Minister of State's desk but down through the years when the budget was available early in the year, very often when it came to October, November or December, additional moneys were made available because of the lack of spending in certain areas and these were given to the county enterprise boards. They had to approve the grant aid within six weeks and draw down also had to be made in that time. It was neither workable nor practicable. Perhaps the Minister of State might clarify this point. We will reserve judgment on whether to press the amendment. We cannot have a situation where county councils and councillors are expected to come up with a budget they do not have, for functions they do not have under the local government legislation. It would be grossly unfair to councillors and councils throughout the country to be expected to find such money.

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