Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context

Question 209: To ask the Minister for the Environment, Heritage and Local Government the progress made towards the implementation of a system for financing local government as promised in the programme for Government; and if he will make a statement on the matter. [37021/10]

John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

The renewed Programme for Government contains commitments to introduce a new system for the financing of local government, ensuring the viability of local services, and that Government policy for the reform of Local Government is implemented. The Programme further commits to the introduction of charging for treated water use that is fair, significantly reduces waste and is easily applied.

The revenue base of local authorities was broadened in 2009 by the introduction in the Local Government (Charges) Act 2009 of a charge on non-principal private residences. The charge is payable in respect of private rented accommodation, holiday homes and other non-principal private residences. As at 13 October 2010, the non-principal private residence charge had raised €66,532,480 in respect of 2009 and €61,689,020 to date in respect of 2010. The Government is currently finalising its position in relation to the introduction of domestic water charges.

A dedicated Cabinet Committee has been engaged in finalising the policy decisions for inclusion in the White Paper on Local Government. I intend to publish the White Paper as soon as possible following completion of the Government's deliberations.

The Report of the independent Local Government Efficiency Review Group, published in mid July, includes 106 recommendations for efficiency and other savings of €511 million for the local government sector to be attained in the short, medium and long terms. These savings are comprised of €346 million in efficiencies and €165 million in improved cost recovery and revenue raising. The Group's focus was on removing costs in the local government sector and ensuring that efforts are directed towards improving and extending the delivery of local public services in the most efficient and effective way. The Report's findings and recommendations will be considered by Government in the appropriate policy and financial contexts.

As recommended in the Report, I propose to establish an implementation group with an independent chairperson to oversee implementation of relevant recommendations.