John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I am aware that this a matter close to the Leas-Chathaoirleach's own heart, which is why I made myself available at short notice. I thank Senator Buttimer for the invitation to attend this afternoon so as to update the Members of Seanad Éireann on the important issue of supports for elected members of local authorities across the country. Effective local government structures are an essential part of our democracy. In turn, effective local government cannot be achieved without the hard work and commitment of elected members in service of their communities. A range of financial supports are already in place to assist councillors in their vital work. These include a representational payment that, I think, was introduced in 2002 or 2003, an annual expenses allowance, travel and subsistence allowances, a mobile phone allowance, a retirement gratuity as well as conference and training provisions.

It is recognised that the workload on councillors has increased following the implementation of the 2014 local government reforms and the introduction of municipal districts across the country. In general, councillors now have a broader portfolio of functions at sub-county level and represent larger local electoral areas than before. At the same time there has also been a substantial decrease of 41% in the overall number of elected members from over 1,600 down to 949.

The Programme for a Partnership Government includes a commitment to review the supports provided to councillors, in consultation with representative bodies, to enable councillors to continue their important work. During his time as Minister for Housing, Planning, Community and Local Government, my colleague, Deputy Simon Coveney, gave consideration to the issue. In January of this year he announced intended new measures to better support councillors. It was intended that these new measures would be implemented with effect from 1 July. However, the Association of Irish Local Government, AILG, requested that further consideration be given to the terms and conditions that would apply. I subsequently met an AILG delegation shortly after assuming office to understand its views on the matter. A particular concern raised, which I acknowledged, was to ensure there was an appropriate recognition of the workload of all councillors at sub-county level throughout the country. While the matter took longer than intended, it is important that the measures are implemented in a manner that is fair to all councillors from the outset.

One of the changes introduced in 2014 was the removal of a dual system of local representation. I refer to a situation where town councillors were treated differently from county councillors and, indeed, electors in towns were given two local election ballot papers as opposed to electors in the rest of the country, including the big cities, that only got one ballot paper. It is one of the most important, equitable and fair changes that was introduced by the former Minister, Phil Hogan, when he was in office. It was important that any change to the allowance provided to councillors would not reintroduce a two-tier system by the back door. Ensuring that city councillors are treated the same as county councillors is largely responsible for the delay.

I am pleased to inform the House about the following. Last Friday, 10 November, my colleague, the Minister for Finance and Public Expenditure and Reform, and I signed amending regulations to introduce these important new measures to support councillors in all local authorities. The regulations give effect to the commitment given in the Programme for a Partnership Government.

I am also pleased to inform the House that the main provisions of the Local Government (Expenses of Local Authority Members) (Amendment) Regulations 2017 (Sl 494 of 2017) will be applied retrospectively to all councillors with effect from 1 July 2017. Directions concerning the implementation of the new regulations have now issued to local authorities, representative associations for councillors as well as to the members of this House.

The new arrangements for councillors will comprise of the following new elements. There will be a new allowance for elected members of all local authorities worth €1,000 per annum to reflect the additional work carried out by elected members following the local government reforms of 2014. There will also be an optional vouched annual expenses allowance worth up to €5,000 per annum that councillors may opt for in place of an existing unvouched fixed rate annual allowance of approximately €2,500. This vouched allowance will bring the annual expenses regime for councillors more in line with that available to members of this House.

Councillors will be able to claim vouched expenses against the following categories of eligible expenditure: the purchase of home office furniture or equipment; the purchase of stationery; the hiring of meeting rooms; leaflet and newsletter printing and distribution; advertising relating to functions as an elected members; and the purchase of temporary secretarial support from a licensed employment agency. We are also examining whether the list might include more categories. These categories of eligible expenditure are similar to those allowed for Oireachtas Members. I have had the great privilege of being audited for the past two years and I am sure that other Members of this House have also been audited. I can attest to the fact that it is a rigorous audit process. It is equitable that all local representative are treated in the same manner when it comes to audits of expenditure.

Councillors will be required to retain relevant documentation that shows proof of purchase and payment. They must also submit the documentation to their local authority on a monthly basis. All documentation submitted may be reviewed by the internal audit of a local authority or the Local Government Audit Service.

It should be noted that the revised rates set a higher travel rate for councillors who drive intermediate to longer distances of up to 5,500 km annually. Councillors in this range will stand to benefit under the new arrangements. This is consistent with the position set out by the Minister for Finance and Public Expenditure and Reform with regard to the general travel rates.

Finally, while these measures address the issue of the impacts of the 2014 local government reforms on workload, it is important that the supports provided to councillors will continue to be fit for purpose into the future. In particular, it is important that experienced and hardworking councillors are incentivised to continue to stand for election while at the same time new entrants are encouraged to stand and participate in local democracy. It is my intention that a broad ranging review of the supports provided to councillors, as well as associated terms and conditions, should take place. The review should focus on the evolution of pay trends in the public sector and on how remuneration provided to councillors compares with other jurisdictions. Further details will be announced in due course. The current system of remuneration is tied to that of Senators, a fact that is not mentioned in my notes. That situation is unsustainable and instead the system should be tied to a grade in the Civil Service.