Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I am pleased to have the opportunity to provide the Members of Seanad Éireann with an update regarding improvements to the financial supports for elected members of local authorities. Local authority elected members are now midway through their first term of serving under the new framework established following the implementation in 2014 of the most radical changes in local government structures for many decades. These changes include enhanced roles for local authorities in local and community development, the dissolution of local authorities in Limerick, Tipperary and Waterford and the establishment of new merged entities in their place, the replacement of town and borough councils with municipal districts and the reconfiguration of regional structures.

There was also a series of new governance arrangements, such as an enhanced policy-making role for elected members, new citizen participation measures, local authority service delivery plans, the redesignation of the position of manager to chief executive and stronger oversight powers for elected members in the implementation of policy. Together, these measures represent significant reform. Benefits from the measures include efficiency and economies of scale from the local authority amalgamations in Limerick, Tipperary and Waterford. At sub-county level, municipal districts now cover the entire territory of each county, reflecting European norms. We have removed outdated boundaries and ended the anomaly of small towns having municipal starters and dual representation while some larger centres and rural areas lacked any sub-county governance.

In July 2015, the Department initiated a review of how the new structures were operating on the basis of the experience to date. The objective was to consider the operation to date of the revised local government arrangements. The work included a survey designed to secure the first-hand views of elected members. It focused mainly on the operation of the new system of municipal districts but also dealt with relevant questions on the operation of plenary councils and councillor workload. A modified survey was also issued to the six local authorities where no municipal structures were in place. The surveys issued to all 949 councillors and more than 500 participated. The results indicated the revised structures are generally operating well but need more time to bed in fully. Particular concerns were expressed about growing work demands and the increased size of electoral areas, particularly in rural areas where local electoral areas can be very big in terms of the geographical footprint.

I am fully aware of the extraordinary number of hours given to provide the optimum service to the public at local level. Serving as an elected member of a local authority is not a job of determinate hours. Councillors are continuously on-call for their constituents. The unique nature of their duties also means they incur expenses in their role as public representatives. As the House is aware, a range of financial supports is already in place to assist councillors in their vital work. These include a representational payment, fixed annual expenses allowances, travel and subsistence allowances, a mobile phone allowance, a retirement gratuity as well as conference and training provisions.

The Programme for a Partnership Government includes a commitment to review the supports provided to councillors, involving consultation with the Association of Irish Local Government, AILG, and the Local Authorities Members Association, LAMA. Shortly after taking office last year, I met representatives of AILG and LAMA as well as attending the autumn seminars of both organisations.I listened carefully to the concerns of elected members over the increased workload being experienced. I also reflected on a range of important issues at stake in this area. I spoke to quite a number of Members of this House, from all parties, about their concerns in this regard. Last month, my Department advised local authorities that, in order to support elected members more fully in their public roles, I had decided to alter the arrangements governing elected members' annual expenses allowance. These changes are a response to the increased workload experienced by elected members arising from the reforms of 2014 and, in particular, to the allocation of new statutory functions in that regard. Elected members now generally have a broader portfolio of functions and represent larger local electoral areas than before. There has been a substantial decrease of 41% in the overall number of elected members, from 1,600 to under 1,000, combined with a growing population of constituents to serve.

I intend to make changes on two fronts. At present, elected members are able to avail themselves of a fixed allowance to cover expenses, other than travel and subsistence, which are reasonably incurred in the discharge of their official functions and duties. This amounts to between €2,286 and €2,667 per year, depending on the council concerned. It operates on an unvouched basis. In future, each elected member may choose to continue receiving the current unvouched fixed allowance at the existing rate or opt to receive a new expenses allowance, which will be up to a maximum of €5,000 per year and operate on a fully vouched basis. The allowable expenditure categories and documentation required of this new vouched system will be aligned, as appropriate, with the arrangements in place for Members of the Oireachtas. It is envisaged that the following categories of expenses could be claimed for under the new vouched system: leaflets and newspaper distribution; web hosting and other related computer costs; hiring rooms for clinics and other meetings; advertising related to the performance of duties as an elected member; and the purchase of secretarial support. Fuller details of allowable expenses will be issued in due course.

The second change I have made is to bring in a new municipal district allowance. The new municipal districts require councillors to service larger local electoral areas than previously was the case. At the same time, the reductions in overall councillor numbers were concentrated in areas that now have municipal districts. The 2014 reforms involve the formal assigning of specific statutory functions to be performed by municipal districts themselves. In recognition of these specific new factors arising from the 2014 reforms, there will be a new municipal district members allowance worth €1,000 per year to apply to the 25 local authorities that now have municipal districts. I intend that the new arrangements will come into effect from 1 July 2017 following engagement with the Department of Public Expenditure and Reform and consultation with the Revenue Commissioners and, of course, local authorities.

I am aware there have been calls for an increase in the representational payment that councillors receive. Since its introduction in January 2002, the payment has been linked to a Senator's salary under the relevant regulations, which provide that when a Senator's salary is altered, the payment also changes by the same proportion. Elected members benefitted from this link to a Senator's salary over the period 2002 to 2008 when the payment increased by 60%, from €11,000 to €17,604. The payment was then reduced by €1,039 to its current level of €16,565 over the period 2010 to 2013 in line with the reductions in a Senator's salary under the FEMPI Acts. Of course, councillors will benefit proportionately from future pay-restoration measures that will increase a Senator's salary. In addition, my colleague, the Minister for Social Protection, recently introduced changes to the PRSI status of elected members. These changes mean councillors, by virtue of their PRSI payments, will now have access to relevant social insurance benefits.

This is an area in which it is very difficult to reach a broadly acceptable solution because different people have different priorities. Different people structure their local public representation differently. The voter-councillor ratio is higher in some built-up urban areas than in some rural areas, where there are huge footprints to be covered. As Senators know, the changes resulted in many more councillors per local electoral area in many cases. I intend to consider a review of local electoral area boundaries after we have the review of Dáil electoral areas, which will be finished at the start of the summer in a few months' time. There are issues that we need to consider.

I know there are councillors in the cities of Dublin, Cork and Galway who, in light of the allowance of €1,000 for all the councillors with a new statutory responsibility for municipal districts and the associated workload, feel somehow left out of that particular element of the reform. As a Minister, however, I have to ensure taxpayers' money is spent in a way that is transparent and that it is fully accounted for. I must have clear reasoning as to why we should introduce new allowances. There is very clear reasoning in regard to the setting up of municipal districts and all that comes from that. The truth is that, in some of the urban areas, there was far less change in terms of the numbers of councillors representing those areas and the new structures that were necessary to put in place after the abolition of town councils. I have to be honest about that. Obviously, it would be more politically acceptable for me to simply grant an allowance for everyone but I have to be accountable for the decisions I make. I have to go through a process and obtain a series of recommendations that are independently put together based on statutory responsibilities that people have and not based on how hard people work. I know how hard councillors work. I was a member of Cork County Council before any of these supports were in place. Some councillors work extremely hard. The vast majority do; otherwise they would not stay elected. Local government is now a very competitive environment.

Not quite, but nearly half of our councillors at local level, are full-time councillors. It is from this that they drive almost all their income. It is important for the public to understand that someone who is a full-time local public representative is not paid well. They choose this because they are seeking to change their local community and improve circumstances for people. They get a buzz from public representation and politics and it is fair to say they are certainly not in it for the money. Sometimes they get very bad coverage in respect of the motivation behind the decisions they make. From my experience with local government, I believe people are sincere, hard-working and operating in a very competitive environment from election to election. They put very many personal resources into trying to stay elected. I am happy to make the changes because I do not want circumstances in which people cannot afford to stand for local government. That is what we are approaching in some cases, which is why it is necessary to consider further support in respect of legitimate expenses incurred by public representatives. It is also important that there be transparency in this regard, which is why it is very important that expenses be fully vouched and accounted for under the increased package.

I ask Members to work with me.I know that many people in this House are very engaged with local government and with councillors. Many have come from local government in advance of coming into this House and talk to representative bodies on a regular basis. Some people are very happy with these changes, some people wanted me to go further and some people feel left out. Others feel that it has been handled in a fair and transparent way. There has been no change to the supports for councillors for over 15 years, through very good times and through a very dark period in terms of the Irish economy. What I am trying to do here is recognise the increased workload that has come from the changes that have been made through that period and recognise the increased statutory responsibilities in law that councillors have to accommodate in their day-to-day lives, particularly around municipal districts, and reflect that in a modest new allowance, and to also recognise the increased professionalism within local government, where a much higher percentage of people now than ever before are full-time councillors. We need to try and reflect that in the supports that are available in a transparent way for legitimate expenses incurred in the work that they do. That is my only motivation here and I hope that this House will recognise what we are trying to do here and work with me on it.