Vol. 263 No. 10
asked the Minister for Local Government if he will state in respect of each local authority the amount of the additional cost which must be obtained from rates as a result of the proposal of the Irish banks to increase charges to local authorities.
210.
asked the Minister for Local Government if his attention has been drawn to the proposal of the Irish banks to increase charges to local authorities; whether an extra £250,000 will consequently be levied on rates this year; whether any protest has been made to the Irish Banks Standing Committee, and, if so, with what results; and the steps the Government propose taking so that local authorities will not have to impose this severe burden on ratepayers.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 209 and 210 together.
Some days before the end of the last financial year that is, towards the end of March last, the associated banks notified local authorities of changes which they proposed to make in the arrangements for dealing with accounts with effect from the commencement of the current financial year. The notice indicated that the banks had decided to impose charges on local authorities for the handling of their accounts. Local authorities had up to that time been totally exempt from such bank charges.
On the basis of the transaction charges notified at that time by the banks, local authorities made estimates of the total cost to them of the charges over a full year. Details of the estimates of those local authorities for which I am the appropriate Minister are in the form of a tabular statement which, with the permission of the Ceann Comhairle, will be circulated with the Official Report. The aggregate cost to all local authorities, including health boards, vocational education committees, county committees of agriculture and other subsidiary bodies amounted to £250,000 approximately.
In September last the banks notified further details of the transaction charges which they proposed to levy on local authorities. The estimated cost to local authorities of the charges as notified in September is not available.
I am very concerned at the associated banks' proposals to depart from the long-standing arrangements which have obtained in regard to the accounts of local authorities and the burden that such a departure would place on the local authorities' financial resources. My views on the matter were conveyed to the Irish Banks Standing Committee in letters of 8th May and 12th June, and through my Department's representatives on a deputation which met representatives of the banks on 6th July. The deputation referred to comprised representatives of the County Councils' General Council, the General Council of Committees of Agriculture, the City and County Managers' Association and my Department.
In a letter dated the 2nd October, 1972, I had the local authorities' case, as I see it, restated in detail to the banks. Subsequently, as a result of approaches made by the Central Bank arrangements were made for representatives of both sides in the dispute to come together. The first meeting between the parties took place yesterday and it is envisaged that further meetings will take place.
Following is the statement:
|
Local Authority area |
Cost of Bank Charges as originally estimated |
|
£ |
|
|
Carlow |
1,400 |
|
Cavan |
2,250 |
|
Clare |
3,440 |
|
Cork |
9,660 |
|
Donegal |
3,555 |
|
Dublin—City & County |
17,316 |
|
Galway |
4,350 |
|
Kerry |
6,000 |
|
Kildare |
3,160 |
|
Kilkenny |
3,975 |
|
Laois |
3,300 |
|
Leitrim |
820 |
|
Limerick |
3,235 |
|
Longford |
1,164 |
|
Louth |
2,400 |
|
Mayo |
5,840 |
|
Meath |
2,583 |
|
Monaghan |
2,540 |
|
Offaly |
1,900 |
|
Roscommon |
1,785 |
|
Sligo |
1,707 |
|
Tipperary N.R. |
2,550 |
|
Tipperary S.R. |
5,250 |
|
Waterford |
1,900 |
|
Westmeath |
1,860 |
|
Wexford |
5,978 |
|
Wicklow |
2,355 |
|
Cork County Borough |
4,400 |
|
Dublin County Borough (included with County) |
|
|
Limerick County Borough |
1,100 |
|
Waterford County |
|
|
Borough |
1,150 |
NOTES (a) The above figures were calculated by reference to the only guideline available as to the proposed rate of charge up to September, 1972. Estimates prepared on the basis of the new and detailed scale of charges drawn up by the banks in September, 1972, including charges for many items not previously referred to are not available.
(b) The figures given for the counties generally include figures for the urbans and in some cases they include figures in respect of certain other small local authorities within the county. The balance of the original estimate of £250,000 relates mainly to authorities for which the Minister for Local Government is not the appropriate Minister, such as the regional health boards.
(Cavan): Would the Minister consider an arrangement whereby there could be a common account in one bank for ali local authorities in the country with liberty to draw on it in various other banks so that when it would be in credit, as it invariably would, taking one with the other, interest would not have to be paid? I know it cannot be dealt with in a short question like this, but does the Minister agree that, in view of the attitude of the banks, there is a lot to be said for considering some such arrangement?
Pending the outcome of the discussions that are taking place at the moment, I would no like to make any comment, but I do not mind telling the House that I was quite annoyed with the attitude of the banks in dealing with this matter.
(Cavan): It is not enough to be annoyed. Will the Minister consider doing something about it?
If the Deputy were listening to my reply, he would not be so smart. I have spent quite a lot of time on this problem.
The remaining questions will appear on next Tuesday's Order Paper. Deputies who wish to obtain written replies may obtain them at the General Office.
