InBus_Win09_1-55:InBusiness 1-61 11/12/2009 16:20 Page 55
Local Government | FEATURE
Minister for the Environment, Heritage and impossible to predict what each individual retention of a percentage of stamp duties while
Local Government said the white paper on local authority will do. committing itself to a five year freeze on
government reform would be published ‘within However, Lynch is certain that they need to business rates. Its local government reform
weeks’. In May it was stated that sections of the compete more aggressively with the private document published in May outlined how it
paper would be published before the European sector in areas such as refuse collection. “Local would extend the concept from the 2001 Local
and local elections in early June, but within a authorities can provide a good service and raise Government Act, which allows local authorities
week it was revealed that it would be delayed revenue at the same time. They surrendered to set up community funds to finance
until the Commission on Taxation’s their customer base to the private sector, which community initiatives.
recommendations were considered, despite the was happy to take it on – this suggests that they It is envisaged that central government would
fact that in July, the Minister stated the report should never have let it go in the first place.” continue current arrangements to provide for a
had no bearing on the paper. Ciarán Lynch’s Following a meeting with councilors in basic level of service, but that if communities
assertion is that it is hard to know exactly what Kilkenny in November, John Gormley said town wished to provide their citizens with improved
the government’s plans for local government councils would not be abolished despite the and expanded services then they would have
are. ‘The McCarthy report had some radical recommendations of the McCarthy report, the option to raise money locally for specific use
ideas but it is an accounting exercise rather than stating that were better ways of saving money. within that community, thus speeding up the
a strategy document. The minister needs to He added that the role of the eight regional delivery of small local projects.
clear up any ambiguity around how the white authorities would be further developed in an “There will be an 8 per cent reduction in the
paper proposals will be benchmarked against expansion of ‘representative democracy’. Local Government Fund in 2010 and that will
the McCarthy report – reduction of services Phil Hogan, Fine Gael’s local government place services under pressure, in which case we
does not equate to reform of services.” spokesperson also believes in the town council need to look at more efficient administration,”
Lynch is also concerned that resources will be concept, even though his party advocates a says Hogan, who believes the extra workload
taken from the Local Government Fund in moratorium on new councils. But he rejects the generated by the processing of water rates
2010, which in 2007 accounted for 42 per cent notion that an enhanced role for regional and/or stamp duty payments locally could be
of local authority income. “We are in a situation authorities would lead to greater local accommodated within the spare capacity in
where cost measures have to be addressed, but decision-making, describing it as another layer existing administrative functions.
if roadwork programmes were taking priority of bureaucracy. Local authorities will probably reduce services
over disability grants that would be a concern.” The publication earlier this year of the Local and rationalise their administrative structures to
Labour’s local government spokesperson Government Charges Bill 2009 represented a compensate for the funding shortfall, but Fine
admits there are major structural difficulties in step towards enabling local government to raise Gael claims there are areas in which significant
that local authorities became over dependent its own finance. The €200 charge on non- savings could be made without impacting on
on development levies in recent years, but principal private residences is expected to service delivery. It has proposed the
estimates there is potentially €1bn locked up generate an annual revenue stream of amalgamation of 53 agencies into local
(raised under these levies) that cannot be spent approximately €40m according to the Minister government and the abolition of another 42,
because local authorities were told that they for the Environment, Heritage and Local which it says would save more than €70m a
could only spend what they generate in terms Government, who recognised that the existing year. “The existing structure could manage the
of income this year. revenue base of local authorities was narrow by work done by some of these bodies,” adds the
He feels it is inevitable that at least some local international standards. party’s local government spokesperson.
authorities will seek higher rates to compensate Fine Gael has been looking at other funding
for this shortfall, although he also admits it is mechanisms such as water metering and the
“ALL IRISH LOCAL AUTHORITIES SHOULD PASS ON THE
BENEFITS OF THE PAY PAUSE AND PENSION LEVY TO
PUBLIC SERVICE SALARIES AND REVISIT THE
CALCULATIONS ON WHICH ANY AGREED
INCREASES WERE BASED.”
– Hilary Haydon
InBusiness Winter 09 55
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