Tom Hayes (Tipperary South, Fine Gael) | Oireachtas source

I thank Senator Bradford for raising this issue and I acknowledge his contribution to local government and local government reform generally. I apologise on behalf of the Minister for the Environment, Community and Local Government, Deputy Alan Kelly, who is otherwise engaged this morning.

It is over two years since the Government published the action programme for effective local government, which set out decisions for a range of measures to reform and strengthen local government structures, functions, funding, governance and operational arrangements. During that period, the focus has been directed at implementation of the extensive reform programme and progress has been swift.

The Minister for the Environment, Community and Local Government, Deputy Alan Kelly, would like to make it clear that he will ensure that the fabric of local government and local democracy are fully intact and effective. He does not consider, however, that the re-introduction of the pre-reform configuration of town councils would be the correct approach. As the comments attributed recently to the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, on this matter acknowledged, reform was needed in this area. In some ways the system that operated up to last June was a distortion of democracy. For example, 46% of all councillors represented only 14% of the population. Residents inside the old town boundaries had double votes at local elections, while the often large population resident in towns but outside outdated boundaries were not served by the town council at all. Indeed, many large centres of population had no sub-county municipality.

Town councils did achieve worthwhile results but their capacity was very limited. All the 80 town councils combined accounted for only 7% of local government activity and a significant number of them had no revenue-raising powers and no decision-making capacity in key areas such as housing, planning and roads. It was not feasible to extend the powers, resources and jurisdiction of the town councils without seriously undermining the county councils. Instead, a new integrated system of governance was introduced. Municipal districts now cover the entire territory of each county, reflecting European norms, removing outdated boundaries and ending the anomaly of small towns having municipal status and dual representation, while some larger centres and rural areas lacked any sub-county governance. As well as creating a more rational and comprehensive structural arrangement, the new system will result in more effective and community-focused decision making and implementation. Moreover, under the new arrangements, there is full integration of local authority resources across each county and elimination of duplication both in administrative and electoral terms. The status of the town is explicitly recognised in these new structures. The mayor is appointed by the relevant district, and the title of "Mayor" can only be used in this context.

An important benefit of the new system is a more appropriate assignment of local authority functions. The performance of different functions by members at county and district levels over time will result in greater effectiveness than the previous parallel town and county system, which involved a significant element of duplication. The division of functions between county and district levels has been determined on the basis of what is most relevant to each level. Local matters are to be dealt with at municipal district level, while those of wider strategic application are being decided at county level, without duplication between county and district jurisdictions.

It is important to bear in mind that we are in the very early stages of a reform process. The provisions of the 2014 Act only came into effect on 1 June 2014 and 2015 will be the first full year of the operation of structural and other significant changes in the local government system. However, it is essential to ensure that the new system is being operated effectively and as intended. The Minister has already emphasised to chief executives the importance of fully supporting the role of the elected members at municipal district level.Equally, the members must take full ownership of their powers and responsibilities in this area as well as for the other new governance powers such as the statutory audit committees, annual service delivery plans, management reports, approval of new local authority corporate plans and adoption of schedules of municipal district works by municipal district members. The structured training programme for councillors, which the Department of the Environment, Community and Local Government is supporting, will help to ensure elected members are well-equipped to perform their governance functions effectively.

The Minister for the Environment, Community and Local Government, Deputy Kelly, intends to have a review carried out on the operation of the new structures. In this context, the Department is reconvening a working group for engagement with the Association of Irish Local Government and a broadly based advisory group, both having played an important role in the local government reform process. The groups will give particular consideration to how the new governance arrangements are impacting on the towns and whether any adjustments are needed in light of experience to date, including civic aspects, such as the status of mayors of borough and municipal districts. Moreover, these groups will have an important input into strengthening the role of the local government sector in economic development and the particular role to be played by urban centres. The importance of the role to revitalise the economy of towns and their rural hinterlands has been emphasised in guidelines issued to local authorities by the Department of the Environment, Community and Local Government. The Minister, Deputy Kelly, expects action in this regard to feature prominently in the local economic and community plans that authorities are developing. The experience of urban centres will be evaluated to ensure urban issues are being addressed effectively through the new structures.

The thrust of Government policy is to strengthen local government and foster the potential for improved subsidiarity, coherence and efficiency, resulting in greater value for money for the taxpayer and, ultimately, improving the services delivered for our citizens. The review that the Minister is initiating will provide a sound evidence base upon which to consider any further changes to local government and local democracy, structural or otherwise.