Thomas Byrne (Fianna Fail)
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Go raibh maith agat, a Chathaoirligh, as ucht an deis a thabhairt dom an t-ábhar tábhachtach seo a árdú ar an Athló. I thank you, a Chathaoirligh, for allowing me to raise this matter and I thank the Minister for being present. This is an issue that has an impact countrywide and I wish to highlight one example. I am talking about municipal authorities, in effect, town councils, that own land and property which in many cases is very much associated with a specific town. In Kells, County Meath, between 300 and 350 acres of land is owned by the town council. It is widely considered by the people to be held in trust for the people of the town of Kells. The land incorporates the people's park at Lloyd, hundreds of acres of agricultural land, and Kells business park. Over the years, businesses were attracted to the town through its ownership of this land. I believe more than 1,000 people are employed in that part of the town. There is great affection in the town of Kells for this land. It was originally bequeathed to the town from the Headfort estate.

As I understand from the Local Government Bill 2013, the land that town councils own, such as the lands in Lloyd in Kells, will be transferred to the county council which will have the reserved function of selling it, a function currently reserved for the town council. There are nine town councillors in Kells with a say on this and they are accountable to the people of Kells, but under the Minister's plans, the Kells municipal authority, which covers a much greater area than the town, will have seven members out of a total of 40. The fear is that this land could be sold from under the feet of the people of Kells by a vote of councillors predominantly from other areas. It is a significant asset and worth a substantial amount of money, but I do not think the people of Kells are interested in the money. They are interested in maintaining it and achieving a positive solution to it, but I do not think that positive solution is to give the power of sale to the county council.

I have spoken to my colleagues who are members of Kells Town Council - Councillors Bryan Reilly, Sean Drew and Frankie Lynch - as well as members of my party cumann, and they are very concerned about this. I have also spoken to senior officials in Meath County Council and they have concerns as well. They would like to see something done. Some proposals have been put forward, such as putting the land into some type of trust arrangement. There are complications with that, but anything other than financial issues can be overcome. It might be an option to transfer it to the county council in advance of the legislation, but there may be stamp duty issues with that. I do not know if the Minister can provide any comfort on this. I call on him to liaise with the council, the councillors and the people of Kells to ensure this land is protected and not simply handed over to the county council, because it is a valuable asset. Some kind of trust or other protection needs to be put in place in conjunction with the Department and the local authorities. This issue has not arisen much yet, but I am sure there are other examples of municipally held land over which people do not wish to see councillors from another end of a large county having the power of sale.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I thank Senator Byrne for raising this matter and I am pleased to have the opportunity to provide some policy context and detail in relation to the legislative provisions proposed regarding matters such as these. The issue of local government reform at sub-county level was raised on the Adjournment in the House last month, and while I do not propose to revisit the contributions of Senator Ó Domhnaill or the Minister of State, Deputy O'Sullivan, from that occasion, I will make a few comments on the broader policy context of the specific issue raised.

The Government's action programme for effective local government, published in October 2012, sets out the Government decision for a range of measures to reform and strengthen local government structures, functions, funding, governance and operational arrangements. Chapter 6 of the action programme sets out policy decisions to replace town councils with a new comprehensive model of municipal governance, based around principal towns and designed to strengthen local government within counties and to address weaknesses and anomalies in the current system. Without question, this is a radical departure, and the decision to change fundamentally our approach to local government arrangements within counties was not taken lightly.

There has been a considerable element of history, heritage and civic status associated with town authorities, but these strengths cannot hide the fact that the existing system of town local government contains glaring weaknesses, including limited functions, outdated boundaries, duplication of administration and insufficient scale to maximise efficiency or support expertise or resources to carry out a range of complex functions.

The new model of municipal governance will address these and other limitations. Equally, there is no reason the strengths and qualities associated with many town councils cannot be extended beyond the town walls, as it were, to embrace the wider hinterland of towns which are linked to them for a range of social, commercial, educational, employment and other purposes. 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 some larger centres and rural areas lack any sub-county governance. 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. 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.

Invariably during any period of change, specific instances will arise that have to be managed as part of the change process, and I am aware of the lands around the Spire of Lloyd in Kells, County Meath, and the importance attached to them locally as a recreational asset. The status of such assets under the Local Government Bill 2013, which I published recently, and following implementation of the structural reform measures, is clear. In accordance with section 24(2) of the Bill, the local authority for a county will become the successor authority for all purposes where a town council is dissolved. In addition, consequential on the dissolution of town councils, there are extensive provisions in Schedule 4 to the Bill which will apply from the date of dissolution in respect of a range of matters. Paragraph 2 of Schedule 4 deals with the transfer of assets from a dissolved authority to a successor authority and provides, inter alia, that all assets which were vested in or belonged to an authority to be dissolved will from the relevant day or date be transferred to the successor authority.

The bottom line is that these lands will continue to be an amenity available to and enjoyed by the people of Kells and of the wider hinterland. After mid-2014, operational responsibility for the land will rest with Meath County Council, but stewardship will rest in the first instance with the elected members for the Kells municipal district who, under the new legislation, will have a strong portfolio of reserved functions to be performed in that district - much stronger than county councillors currently have at area level - including functions in respect of budgetary procedures and decisions on programmes of works within the district.

To conclude, I will refer back briefly to the overall local government reform programme by reminding Members that the core purpose of the programme is to put local government in a position to deliver better services, amenities and governance to their communities by strengthening the structures, finances and operations generally of the system. In the context of future governance arrangements within counties, the principle of strength through unity will be a key factor in ensuring that these objectives are delivered to the benefit of all communities, urban and rural.

Thomas Byrne (Fianna Fail)
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I am disappointed with the response. I did not table this matter to attack the Minister's local government strategy but to raise a specific problem that has arisen as a result of it. That problem is acknowledged by all parties in Kells and, indeed, by many of the officials I have spoken to in Meath County Council. I urge the Minister to examine this. I am sure there are similar cases around the country and provision could be made to give them protection. The Minister stated what is going to happen, which is that the ownership will transfer from Kells Town Council to Meath County Council. The danger is that Kells municipal area, which is a great deal more than Kells town, will only have seven votes of the 40 on Meath County Council. Yes, the lands will still be there, but the rental income from them will go into a county fund and not into the Kells municipal area, as I understand it. The Minister must be able to think of a solution.

I urge him to accept that I raise this matter constructively to highlight a problem which many people would like to have solved. I hope he will think about it to see if anything can be done in the meantime. If the land can be transferred to the county council in advance of the legislation, with some conditions, that might be done. However, I understand there is a stamp duty liability or there are other complications. Perhaps it is not the done thing or it could be seen as improper to do it before the legislation is passed. Perhaps the Minister would to ask an official to look at this and liaise with senior officials in Kells. Mr. Stewart in Kells is from that area and he is very supportive of maintaining this. The council has no plans to sell it. I am not trying to raise any fears, but it has been protected for hundreds of years and we have a duty to continue to protect it, if we can.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I appreciate Senator Byrne's bona fides on this matter. It is quite unusual for him to come forward with a very constructive approach, certainly when I come to the House. I appreciate that he is seeking a solution to this matter. I will undertake to examine it legally and see what we can do to allay the concerns. There will be 40 councillors and I am sure Fianna Fáil and Fine Gael will have a number of them to ensure that these lands at Loyd remain for the benefit of the people of Kells and the municipal district of Kells for many years to come and that they will not be supportive of motions to sell some of the gold and silver of Kells for the purposes of dealing with any financial difficulties that might arise or to fill a financial black hole in County Meath. I appreciate the Senator's genuine intent on this matter and I undertake to have the officials in the Department look at it in advance of the legislation coming before the House.