Lynn Ruane (Independent) | Oireachtas source

I move recommendation No. 34:

In page 302, between lines 32 and 33, to insert the following: “Report on local authority revenue raising powers 100.The Minister shall, within 12 months of the passing of this Act, lay a report before both Houses of the Oireachtas outlining the potential for the transfer of certain taxation and expenditure competences from the Government to local authorities and the potential implications for such a transfer in respect of the delivery of public services, the responsiveness of taxation policy to geographic-specific contexts and the potential benefit in respect of strengthening local democracy and community wellbeing.".

Ireland has one of the weakest local democracies in Europe. This year, Ireland has been found to be compliant in only eight of the 20 principles of the European Charter of Local Self-Government by the Congress of Local and Regional Authorities of the Council of Europe. Taxes are a central source of revenue for local authorities. Many states afford local authorities the power to set tax rates. However, this power is usually limited by legislation and the overarching power of the national governments who set the permissible parameters of the rates of tax that are to be imposed. The local authorities are thus restricted by these legislative parameters.

Most local authorities have the power to procure loans, buy and sell property and engage in business activities. This will often be provided for by legislation. Additionally, many local authorities have the power to establish companies, co-operatives or foundations for performing the authorities' functions. A large number of countries surveyed have national constitutions that include provisions relating to the powers and autonomy of local authorities. In Germany, for example, municipal financial sovereignty includes the power to manage income and expenditure on one's own responsibility, in other words, to freely dispose of the financial resources available within the framework of a legally ordered budgetary law. This also includes the municipalities. The ability to raise revenue is one power that is needed; participatory budgeting is another. Fundamentally, if we want to empower local communities, we need to end the stranglehold the Government has on local government. I urge the Minister to accept this recommendation.