Robert Troy (Longford-Westmeath, Fianna Fail)

I thank the Senator for raising this issue, which has been raised recently in national media.

As the Senator will be aware, the Department of Housing, Local Government and Heritage has responsibility for the financial well-being and effective financial management and accountability of local authorities. Where a policy change in relation to local government finances and funding is sought, the first consideration will be by that Department.

The Senator will be aware that the Minister for Housing, Local Government and Heritage, Deputy James Browne, and the Minister of State with responsibility for planning and local government, Deputy John Cummins, announced the establishment of the local democracy task force to finalise a programme of reform and strengthen local government in Ireland on 5 June.

One matter that the task force is to consider is that of granting councillors greater input and control over the development and implementation of the local authority budget and mechanisms to enhance the fiscal autonomy of local authorities. Both the Senator and I served on our own local authorities, and certainly one could be frustrated at times by the restrictions placed on our powers by the unavailability of funding.

The task force will report to the Government in 2026. Under its terms of reference, consideration will be given as to ways in which local authorities could increase fiscal autonomy through own resources, including wider variation options for local property tax, by reviewing existing revenue-raising and debt management options and matched funding requirements.The key here is new or alternative revenue-raising powers, which could potentially include an accommodation levy. In the event that the task force suggests that local authorities be given powers to put an accommodation levy in place, this matter can be considered in the first instance by the Department of Housing, Local Government and Heritage.

As the Senator will appreciate, there are a range of policy issues that could arise from any new levy or charge to be set by local authorities and that would need to be considered before a proposal could be discussed by the Government.

On foot of advice from his Department, the Minister for Housing, Local Government and Heritage may choose to bring a proposal for an accommodation levy to the Cabinet. Any such proposal would examine the range of policy considerations, including the possible impact on tourism as well as the design and scope of such a levy. This would include consideration of what flexibility local authorities would have in setting an amount for such a levy and whether it was applied universally to all visitors every night. Whether such a levy would apply a single rate or whether it would facilitate different bands of rates is another issue that might require consideration.

I expect that, in developing any policy proposal in this area, the Minister, Deputy Browne, will consult with his colleague, the Minister for Enterprise, Tourism and Employment, Deputy Peter Burke. The latter's Department would be in a position to advise on any implications such a proposal would have on tourism, as well as being in a position to provide observations on the impact on businesses in the sector.

Any proposal on funding for local authorities would also need to be considered by the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation in the context of all other expenditure priorities and as part of the annual Estimates process. From previous engagement with the Senator I am aware that she has already engaged in consultation with that Department. Any questions on the work of the local democracy task force are for the Minister for Housing, Local Government and Heritage in the first instance.

To summarise, the key here is the task force that has been established. I encourage Senator Fitzpatrick, with her colleagues on Dublin City Council, to make a submission to the task force to show there is a desire and willingness to work on a potential new levy. The task force could consider that and ultimately report to the Government.