Seanad debates

Monday, 16 December 2013

Local Government Reform Bill 2013: Second Stage

 

7:25 pm

Photo of Mary WhiteMary White (Fianna Fail) | Oireachtas source

The Bill furthers the Government's agenda of centralising power and decision making at national level. Legislation to provide for real reform of local government would facilitate greater devolution of powers to local communities. The Local Government Reform Bill 2013 creates a democratic deficit at the heart of the Irish political system, bestows more power on unelected officials and bureaucrats and fails to transform how politics operates in this country. Headline-grabbing cuts ignore the substantive changes to local authority powers, make the Government even more distant to citizens and mask the failure to shift away from both "silo thinking" and delivery of services by centralised government. Promises in the programme for Government in respect of rebalancing powers between councillors and officials have been abandoned, with section 144 of the Local Government Act 2001 being amended and no new or additional powers being given to councillors. Greater democratic participation is completely ignored by the Bill, which transfers powers away from communities to what is the most centralised Government in western Europe. Members of the public do not realise how democratic most other European countries are in comparison to Ireland. A kind of fog has been allowed to fall over that matter. The Minister previously stated that the level of centralisation is unhealthy. Now, however, he is making it worse.

I urge the Government to celebrate business more by undertaking a complete overhaul of business rates. Last Thursday, I held an event on revitalising the retail sector, at which Sir Terry Leahy, former chief executive of Tesco, was guest speaker. Sir Terry, whose father and mother were from Sligo and south Armagh, respectively, fundamentally believes that government should keep out of business. Business creates the wealth that allows us to meet most of our social objectives, of which the primary one must be the right to a job. The Minister may have read Archbishop Martin making the same point in today's edition of The Irish Times. We cannot meet our social objectives without wealth creation and vice versa. When Connie Doody and I co-founded Lir Chocolates my role may have been to develop the business, but the agenda that drove me was to create employment.

An independent retailer, Ms Breda Cahill, also spoke at the event. Ms Cahill, who employs almost 80 people in full-time and part-time positions, epitomises the type of case to which Sir Terry Leahy referred. The rates she must pay would break one's heart. Local authorities should keep their noses out of business and stop imposing unreasonable rates. The bureaucrats who set rates do not have any commercial sense and are impeding small and medium size retail businesses. While the multinational companies are located predominately in urban centres, the small retail companies that create employment and provide front-of-house opportunities for local products to get on the radar and start exporting are located nationwide. These small shops and businesses, which are already struggling with pressure on their sales and margins, and the cost of electricity and excessive rents, will be forced to pay higher rates, potentially driving many of them out of business. Ms Cahill, who has three retail outlets in Dundrum, Balally and Ballinteer, was crying out for help. The banks have been extremely cold-hearted and she has been left heartbroken as a result of the rates she must pay.

As I stated, the retail sector provides employment locally and regionally and offers young people an opportunity to experience work and learn what must be done to hold on to a job. Little understanding is shown for the contribution small shops and the retail sector make to employment and economic sustainability in local towns and villages. The issue is not on the radar. Our shops are being hindered by a business rates regime that is completely out of date. It is unfair and damaging to saddle one narrow strand of the economy with such a high level of taxation. Businesses need to be sustainable for the sake of the country and local employment. Commercial rates are preventing businesses from developing employment. The retail sector employs 275,000 people and has shed approximately 50,000 jobs since the beginning of the recession in 2008. Business rates and the pressure on retail are unacceptable. As I stated, local authorities and bureaucrats should keep their noses out of business and allow the private sector to develop and grow. I hope the Minister succeeds in becoming a European Commissioner.

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