Malcolm Noonan (Green Party)
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Cuirim fáilte roimh an Aire Stáit.

Mary Fitzpatrick (Fianna Fail)
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I welcome the Minister of State and thank him for coming to the House this morning.

My Commencement matter this morning calls for the Minister for Finance to make a statement on the proposal from Dublin City Council for the introduction of a tourist bed tax and for the Minister to make a statement on his Department's proposals to legislate to give local authorities revenue-raising powers.

The Minister of State will be aware that the introduction of a bed tax, accommodation tax or tourism tax - there are many ways it is referred to - is an idea that has been spoken about for many years but the concept of a visitor tax in the capital is one that Dublin City Council has been progressing. It is the norm in many other large international cities. Amsterdam has one, as do many other European cities.

The Dublin City Council proposal is for the Government to give powers to the local authority to, at the latter's discretion, introduce a local visitor tax. The idea from Dublin City Council is that it would have the power to raise its own revenues and would use those additional revenues to address issues in the capital, such as street cleaning, public space maintenance, the public domain, enhancements in infrastructure, and investment in culture, heritage and entertainment in the city.

I acknowledge when raising this issue that there are significant and record levels of funding being transferred from central government to local government. It is over €750 million this year alone. I also acknowledge the announcement last week of the adjustment to the local property tax, which will result in an additional €19 million in funding for Dublin City Council in 2026. That is really welcome. However, if the Minister of State comes with me and walks along the streets of Dublin, he will conclude, as I have done, that the place is filthy most of the time. It is unacceptably dirty. I appreciate that Dublin City Council has a challenge. It is a really busy city with heavy footfall, but we need a cleaner city. We need the public spaces to feel safe and clean.

We also need investment in our culture, heritage and entertainment. There are incredible works being done in the city in terms of culture - everything from the people down in The Complex in Smithfield, Stoneybatter Festival, Phizzfest, The Five Lamps Arts Festival, the Gate Theatre, and even Style in the City, which is being promoted over the weekends and whereby, on Henry Street and Grafton Street on alternating Saturdays, we will have catwalks, fashion shows and all sorts of style.

The city council, DublinTown and many others are doing great work but the Dublin city councillors themselves feel that they need the power to introduce a visitor tax that they can use to further enhance the city experience. I hope the Minister of State can advise the House on the work his Department has done to examine their proposal, his intentions and his Department's intentions to give powers to the local authorities to have revenue-raising within their own jurisdiction, how that might potentially work and the timescale for same.

Robert Troy (Longford-Westmeath, Fianna Fail)
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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.

Mary Fitzpatrick (Fianna Fail)
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I appreciate the Minister of State's response and that this matter falls to the Minister for local government. I will take up the issue with the local democracy task force. I am the Fianna Fáil spokesperson for local government and I look forward to engaging with the task force.

One point that is very clear from the Minister of State's reply is that no action will be taken by the Department of Finance on the introduction of new revenue-raising powers for local authorities before the local democracy task force reports, which will not be until 2026. That is a very important piece of information for councillors to take into account.

In going forward, the local democracy task force is incredibly important for elected representatives, and not just in this area, as there are other issues that need to be addressed for councillors and other elected representatives in terms of the fine balancing of powers between councils' executive and elected functions. There is a real opportunity for the Government, with the local democracy task force, to work with elected representatives to deliver stronger local government in each of the 31 local authorities.

I thank the Minister of State for his time today. I will engage with the local democracy task force.

Robert Troy (Longford-Westmeath, Fianna Fail)
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Senator Fitzpatrick said the task force would not report until 2026. Perhaps I am wrong, but it seemed like she was saying that is a long time away. It is not really.

Mary Fitzpatrick (Fianna Fail)
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I mean for budgetary purposes.

Robert Troy (Longford-Westmeath, Fianna Fail)
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Budget 2026 is probably only 12 or 13 weeks away. Preparations for it are well advanced in my Department. We are meeting various groups to hear pre-budget submissions and work is under way. If we could get something agreed in the task force, a realistic timeframe would be for budget 2027, given that it is only 12 or 13 weeks to budget 2026. I do not need to tell Senator Fitzpatrick what to do because she is acutely aware of how to do her work, but I encourage her to focus her efforts and work with the local authorities to make a submission to the task force. If the case is not made to the task force, then it may not be part of its proposal. That is what should happen in the first instance.

As someone who served in local government for nine years, I welcome the task force. I always took pride in the work of local government, but I am not blind to the need for it to be more efficient, transparent and accountable, not just to the elected politicians, but to the people they serve. This task force is an opportunity to do that. I will happily work with the Senator on putting forward real, tangible proposals that will enhance and strengthen the role of local government because citizens deserve that, as do the local politicians who serve on the councils.