Gabrielle McFadden (Fine Gael) | Oireachtas source

I welcome the Minister of State back to the House. In simple terms, when it comes to administration, money is power, and the lack of money or the lack of discretion over how to spend it means being powerless. As a former town and county councillor - in the centre of the universe - I am aware of the frustration felt by council members and staff when trying to progress projects or provide appropriate local services. Currently, local government has fewer powers and functions than that of almost any other EU country. Local government has the potential to play a crucial role in our society, providing many of the basic public services, and should be the most important investor in public infrastructure. In other EU countries, local authorities are responsible for the vast majority of infrastructural investment. In Denmark, Finland, France and the Czech Republic, for example, local authorities are responsible for between two thirds and three quarters of all public investment, while Italy tops the list, exceeding 80%.

In 1940, Éamon de Valera, a man I do not like to quote too often, stated the essential thing in any state is not the governmental framework but the standard of citizenship on which it rests. This is only true, however, if the framework takes responsibility for providing the conditions and stimuli for the practice and development of active citizenship. Local government has the potential to do this. Unfortunately, in the following decades, successive Fianna Fáil Governments did the opposite and

continued to undermine the role and funding of local authorities, culminating in the reckless Fianna Fáil budget of 1977, which dealt a hammer blow to the independence of local authorities. By abolishing rates and service charges without any

consideration of a substitute method for financing local government, they effectively choked its independence and power, diminishing local responsibility and control. This lack of local control leads to a loss of faith in the ability of local government

structures to work.If we are to restore the trust and to close the civic deficit, funding is the place to start.

The central collection of tax revenue to be dispensed on a rather arbitrary basis is far from ideal. The problem is further exacerbated by the fact that much funding from central government is tied to particular projects or areas of spending, very often requiring ministerial approval.

All across the country there are excellent councillors, whose only motivation is to do the best for their local communities, but their efforts and their creativity are being hamstrung. If local authorities were given the power to raise more of their own income and had control over how it is spent, we would have a much more responsive system. Councillors would have to make the harsh decisions. Money would have to be spent on the most essential projects and be needs driven, rather than on plans that currently are grant or funding driven.

The cynics among us might suggest that power has been stripped from councillors so that they do not become a threat. Others would suggest that if funding and powers were devolved downwards, some Departments would be left with little to control or administer. Would that be such a bad thing? The principle of subsidiarity holds that central government should only be performing those tasks that cannot be performed at local level. Many areas that are currently controlled centrally could be administered more appropriately and efficiently at a local level. Urgent changes are needed in terms of funding, frameworks and mindset. These changes must aim to increase local autonomy, local democracy and local participation, thereby ensuring a more flexible, creative and developmental role for local government.

Giving the responsibility for financing back to local people bestows on them the duty to spend money as wisely as possible. I have faith in councillors to do just that.