Seanad debates

Tuesday, 8 October 2013

Adjournment Matters

Local Government Reform

8:35 pm

Photo of Brian Ó DomhnaillBrian Ó Domhnaill (Fianna Fail)
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This Adjournment matter relates to the document Putting People First and the proposed legislation on local government reform which I understand will be before this House shortly, after its passage through Dáil Éireann. I refer to the workings of town councils throughout the country. The Government's proposals, covered in the Putting People First policy document, are to abolish all 75 town councils and the five borough councils. From meeting local town councillors and attending public meetings in places such as Letterkenny in County Donegal, I know this to be a retrograde step that would remove the layer of democracy closest to the people.

I offer the example of the cost of running a town council such as that in Letterkenny, which has nine elected members and a number of staff. The town council has a budget of between €8 million and €9 million per annum. The cost of running the council is €80,000. If that does not reflect value for money I am not sure what does. The town has a population of approximately 20,000. The council is deeply engaged with the Tidy Towns committee, is involved with 90 resident associations and is deeply rooted in all the sporting and voluntary organisations within the town council area.

Moreover, it offers money back to the county council from the rates collected within the town.

The argument that these proposals will save substantial moneys does not make any sense whatsoever. As such, I am calling for a period of reflection. I appreciate that the legislation might already have been drafted, but I hope the Minister, Deputy Phil Hogan, will at least prove himself willing to accept amendments whereby some of the town councils in a position to prove their effectiveness and success would be retained. To clarify, I am not arguing that all town councils should be retained. However, having carried out my own survey of the 75 town councils and five borough councils throughout the country, I discovered that only 29 covered a population of 5,000 or fewer. In other words, 51 of these fora are catering for a population of more than 5,000. Why not set a population threshold whereby councils at or above that level and which can show they are economically viable and effective and have benefited the local community would be retained? To use the example of Letterkenny, with a budget approaching €10 million, the net cost to the taxpayer is €80,000 in the form of salaries for council members. The argument that savings will arise from laying off town council staff does not stand up because these staff will be redeployed in the local government sector.

Now is the time for the Government to reflect on its local government reform plan. The people indicated in the referendum last week that they did not favour the abolition of the institutions of our democracy. Town councils are the democratic fora which are closest to the people. Given the outcome of the referendum, the Government should at least consider retaining some, if not all, of the effective, efficient and successful town councils throughout the country. I am not sure whether the Minister of State will be able to give me the response I am looking for. I ask, however, that she and her senior Minister take on board last week's vote and reflect on the points I have raised, with a view to accepting the amendments my party intends to table when the legislation comes before the Oireachtas.

8:45 pm

Photo of Terry LeydenTerry Leyden (Fianna Fail)
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I hope the Minister of State finds the Senator as persuasive as I have.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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I thank Senator Brian Ó Domhnaill for raising this matter which I am taking on behalf of the Minister, Deputy Phil Hogan. I am glad to have the opportunity to provide some context and detail of the important issues he has raised.

The Government's action programme for effective local government, published in October 2012, sets out proposals for a range of measures to reform and strengthen local government structures, functions, funding, governance and operational arrangements. Chapter 6 of the action programme details the policy decision to replace town councils with a new comprehensive model of municipal governance based on principal towns and designed to strengthen local government within counties and address weaknesses and anomalies in the current system.

I fully acknowledge that many town councils have achieved successes for their communities. I am convinced, however, that the strengths of municipal governance that have been a hallmark of these councils will be brought to bear on a wider basis in each county under the new arrangements which will see towns being united with their natural hinterlands. Instead of talking about abolition, it should be recognised that a new model of municipal governance is being introduced in which municipal districts will cover the entire territory of each county, reflecting European norms, removing outdated boundaries and ending the anomaly of small towns having municipal status and dual representation, while certain larger centres and rural areas lack any sub-county governance. The effect will be to enhance significantly both democratic leadership and accountability, on the one hand, and operational efficiency, on the other, within a far more cohesive and integrated system which reflects the realities of the 21st rather than the 19th century.

As well as creating a more rational and comprehensive structural arrangement, the new system will result in more effective and community focused decision making and implementation. The successes of town councils such as Letterkenny have been achieved, despite limitations of powers and resources. Under the new arrangements, there will be full integration of local authority resources across each county and the elimination of duplication both in administrative and electoral terms.

An important benefit of the new system will be a more appropriate assignment of local authority functions. The performance of different functions by members at county and district levels will result in greater effectiveness than the current parallel town and county system which involves a significant element of duplication of functions. The division of functions between county and district levels will be determined on the basis of what is most relevant to each level. Local matters will be dealt with at municipal district level, while those of wider strategic application will be decided at county level, without duplication between county and district jurisdictions. Elected members will perform a range of important reserved functions at district level on a fully devolved basis, subject to certain requirements relating to consistency with overall local authority policy. By ensuring decisions are taken on a devolved basis and functions are carried out at the appropriate level within the county, the principle of subsidiarity will be strengthened in the local government system and the best features of effective councils such as Letterkenny will be retained and extended across the country.

The new arrangements will also address the extent of disparity in representation levels. The local electoral areas recommended in the boundary committee report, published on 30 May 2013, will form the basis for configuration of the new municipal districts. As is evident from the report, the committee was mindful of the need to integrate towns and boroughs into the new governance structures when determining the local electoral areas. The electoral review also had a specific goal of achieving a better balance and consistency in representational ratios, having regard to the significant population changes that have taken place since the current numbers were decided. The review also took particular account of factors such as the location of towns and local identities in the new municipal governance arrangement.

I am confident the new governance arrangements within counties will enable councillors to represent their constituents more effectively than under the current arrangements. Work on the implementation of the reform agenda is proceeding rapidly and we will be moving shortly to the next phase with the publication of the necessary legislation to provide for the new arrangements, thus paving the way to deliver the benefits outlined in the action programme. These include greater operational efficiency and representational effectiveness, getting more from the local government system, improving the range and quality of local government services for citizens and communities, maximising value for money for taxpayers, and ensuring local government can make a strong contribution to national recovery.

Most agree that radical change in the local government system is long overdue. This is not about change for the sake of it. It is about delivering a restructured and revitalised local government system that is capable of acting as the main vehicle of governance and public service at local level. I am sure there will be room for proposals from Members on Committee Stage.

Photo of Brian Ó DomhnaillBrian Ó Domhnaill (Fianna Fail)
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I appreciate that the Minister of State is answering on behalf of the Minister, Deputy Phil Hogan. I disagree, however, with the fundamental approach being taken. The Department can dress it up however it likes, but the reality is that we are seeing a stripping of powers from local authority members at both town and county level. This is of particular concern in a context where Irish Water is set to subsume all of the relevant functions for which councillors have formerly been responsible.

Where the town council model has worked well, towns throughout the country will, as a result of these proposals, lose an important local democratic forum. In addition, pressure will come on other areas within the extended rural electoral area because ratepayers and people in these areas will not be able to meet the demand-----

Photo of Terry LeydenTerry Leyden (Fianna Fail)
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The Senator is moving beyond the scope of a supplementary question.

Photo of Brian Ó DomhnaillBrian Ó Domhnaill (Fianna Fail)
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I am asking the Minister of State to convey my concerns to the Minister and urge him to engage in a period of reflection.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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Our intention is not to take away powers but to devolve functions to appropriate levels. If we were to retain town councils, while also putting in place municipal districts, there certainly would be duplication.