Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank Senator Byrne for raising these important matters on the implementation of the Moorhead report and the issues of the devolving local powers down to local government.

On 1 July 2021, new regulations came into effect to reform the framework of financial supports for councillors to allow them to continue to carry out their statutory functions and community representational role in an effective and sustainable manner. This gave effect to an important commitment in the programme for Government to implement the findings of the Moorhead report within 12 months. One of the main recommendations of the Moorhead report was that there should be a rebalancing of financial supports for councillors away from tax-free expenses allowances in favour of more normalised salaried income, as applies to other types of office holders. The new regulations that I, along with the Minister for Public Expenditure and Reform, Deputy Michael McGrath, gave effect to provided for: the introduction of an annual remuneration payment that, since 1 February 2022, is worth €26,415 per annum; and the introduction of a new vouched local representation allowance worth up to a maximum of €5,160 per annum, with similar terms to the vouched public representation allowance that is available to Oireachtas Members.

The Senator has referenced two issues in terms of the calculation of the expenses. I met with both the AILG and with LAMA in response to that and we will resolve that issue. Across the 31 local authorities we do need clarity. My view, as Minister of State, is that I want to support local authority members in every way, so that they can discharge their functions to their communities. I do not want to make it any more difficult. We will therefore work to resolve that and I am confident that we will do so.

In relation to the SPC chairperson, in the first instance, when terms and conditions are reviewed by the Government, they have to be set to the Revenue Commissioners for approval. That is part of the rules and regulations, and unfortunately, the chairperson of the Revenue Commissioners notified us that they had decided or made the determination that SPC chairperson allowances were to be taxed. There were some negotiations and they decided to do it from 1 January. They had looked to do it earlier on prior to that. Unfortunately, however, this is an argument that we did not win. I have to be quite and frank and honest about it. Unfortunately, it is beyond my control. They are independent in the performance of their functions and they made that determination.

In relation to travel bands, essentially, the key issue here is that the Department of Public Expenditure and Reform, as I understand, are reviewing the calculation for milage and expenses across the whole Civil Service. That will obviously apply directly to local authority members. Therefore, that is out of my remit and it is part of the Department of Public Expenditure and Reform. Once it has its review done, that calculation will come back, and we will be advised of it through a Government decision.

In relation to gratuity, which is another significant issue, the Moorhead report was clear that in the first instance local authority gratuities or pension calculations work in line with the normal public service rules and they were looking to increase it up the normal 66 age retirement. Second, the report raised issues about the funding of the local authority pensions. In response to that, I have set up a group to have a look at bringing in local authority members to the Department to see if we can get a resolution. However, I want to be honest about this, which is to say that I am not promising anything with regard to that. This is because it is difficult in terms of the funding mechanism, as well as the fact that they will get payment when they are 55. Yet, I think that the change in the PRSI class S will assist local authorities. Subsequent to that, it is going to be difficult. However, I have put the process in place to try to resolve it and to address the concerns that many of the local authority members have brought to me, like Senator Malcolm Byrne has done. Hopefully, we will do that.We also have our action plan to tackle other areas such as maternity and paternity leave. Hopefully, we will be bringing proposals on this issue to Government soon. The issue concerning diversity is an important one and we must try to ensure our local authority chambers reflect the society they serve. It is important. A great deal of work and reform is under way in that regard. In a wider reform perspective, we have the property tax review, which will be key to local authorities retaining their funding. I refer as well to the directly elected mayor of Limerick, which is another exciting proposal bringing devolved government back closer to citizens. Additionally, a citizens' assembly will examine the same idea for Dublin. A right for a plebiscite to be held in all the other relevant local authority areas will also be contained in that legislation.