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

Senator Mac Conghail was very concerned about the fact that there was no significant devolution in the legislation. In respect of local authorities, members now have power to vary the local property tax and have a source of income at local level that will be enshrined on 1 January 2015 due to this power to vary rates plus or minus 15% of the national central rate. This is fundamental to stronger local government. There will be a much stronger local authority role in economic development through the local enterprise offices and there will be much closer involvement by local authorities in local development. Community funding bypasses local authorities at the moment but that will now be centre stage with local government. The amendment of section 72 of the Local Government Act 2001 enables wider devolution of powers to local government and the Cabinet handbook has been amended to ensure that local government proofing procedures are put in place to ensure that local government is the first option for any new local functions.

We have an assignment of some 70 reserve to the new municipal districts. Some of the functions are greater than others but they must be assigned to some place so the municipal districts are getting 70 reserve functions. The municipal district members are also to be involved in deciding programmes of works in respect of the municipal area. The reforms being implemented in the local government structures will help to ensure that we will make devolution much easier and more achievable in the future.

Senator Quinn was concerned about the rates. As I said to Senator White, rates should be harmonised downwards. The rates increases if they apply, which is up to the councillors, will be phased in over a ten-year period.