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

When Fianna Fáil was in power, it centralised everything in quangos at national level. It abolished any powers of particular significance that were held at local government level. As a result of what happened in 1977 and thereafter, we have local administration but we certainly do not have local government. I remind the House that the Bill provides that in future, no separate structures will be established outside of local government unless they are clearly necessitated in exceptional circumstances. It will no longer be possible for local government to be bypassed by quangos. Councillors will be able to vary the local property tax. There is no better way to ensure councils have power than to give them the ability to raise and spend money at local level.

Councillors at municipal district level will be given reserved functions for the first time. Town councils, urban councils and town commissions have never had these functions. Approximately 70% of all local authority activity was taking place at town council level, but just 7% of the money was being spent at that level. Councillors will be able to adopt local economic and community strategies for the first time. The moneys we get from the EU, which currently bypass local government and go straight to the community sector, will now be aligned with local authorities, which will have the power to adopt plans for the spending of that money. The local authority powers that were given to county and city enterprise boards, through Enterprise Ireland and the Department of Jobs, Enterprise and Innovation, will be returned to local government level at the local enterprise offices. I do not understand why people like Senator Mullen did not read the Bill to see the significant responsibilities and functions that are being devolved to councillors for the first time.

We are setting up a new arrangement - a national commission - to ensure the money that will be spent at local authority level when councils have considerable additional moneys, powers and responsibilities will be spent well. I genuinely believe the combination of the regional assemblies and the national oversight commission will have a meaningful role in the adoption of best practice in local authorities. This structure will ensure that councillors are able to make changes in authorities that are not up to scratch, for example by asking relevant questions about best practice. It should not matter whether the service is supplied by the public sector or the private sector at local level as long as the customer gets the best possible service. Much more accountability is needed. It should not be a case of the managerial local authority system, as it is at present, policing itself on the basis of key performance indicators. That is what happened under the performance-related pay regime that was applied to directors of services and managers by my predecessors.

The attendance of public authorities at meetings is also important. I will table an amendment on Committee Stage, as proposed by several Senators, to ensure public authorities can be asked and, in so far as possible, compelled to be responsive at local level to local representatives. Nothing in the Bill takes powers away from councillors, except in the case of parking charges. As Senators are aware, most parking charges are imposed at municipal district level. It has to be in some municipal district. The municipal districts will be the biggest beneficiaries of the additional income that will accrue in this respect.

I understand that Senator White started a business and was very involved in making sure it was an outstanding success. I remind her that the commercial rate is set by councillors rather than by bureaucrats. We have a job to do in informing councillors that they have a responsibility to business. Rates have generally been frozen in recent years, but they need to come down. That is why I am saying quite clearly that these reforms, which will result in savings, must lead to the commercial rate being harmonised downwards.