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Dáil Éireann debate -
Thursday, 22 Oct 1981

Vol. 330 No. 3

Ceisteanna—Questions. Oral Answers. - Local Authority Financing.

2.

asked the Minister for the Environment the new source of revenue he proposes to make available to local authorities.

I have this matter under review in all its aspects and it would be premature to anticipate the outcome of that review at this stage.

We are all aware that this is a new form of local taxation about which the Minister has spoken in his budget speech and in many other references. This is the time when local authorities are preparing their estimates and they must be informed now of what type of local taxation the Minister intends to introduce. The Minister has said that there will be an option for taxing this or that. Local authorities are entitled to this information. I have been asked by members, even of the Government party what the Minister is speaking about when he says that there will be a new form of local taxation.

If and when the Government decide the issue, of course the local authorities will be informed immediately.

Surely, before the Minister made a public statement the Government had discussed this matter.

If the Deputy reads my public statement, he will see that this is not so.

The Government have made no decision on this, even though the Minister has made a public statement?

In the principle yes, but not in the details. In the principle the Government had agreed. The Government have decided that an investigation will be carried out into means for allowing local authorities to raise additional finance in addition to the rates to be paid to them by the Government, and how that would be done.

In reply to a written question which I recently put down to the Minister he said that he has at present no application before him for the sanction of charges to be levied by local authorities. If local authorities go before the Minister with a proposal does he intend to sanction such charges as water, planning, domestic refuse and other charges?

It depends. That is a hypothetical question. I could not give an answer. It depends on the proposal for the changes. Until the proposals are put, I would not make a decision on them.

Is the Minister in favour of this type of charge? Would he not accept that this is merely rates by the back door?

What charge?

The type of charge I have spoken about.

I have told the Deputy that the Government made a decision on it in principle. I am part of the Government.

The Minister has said that the Government did not discuss it in detail.

They did not discuss the details.

What the Minister is saying to this House today is that he is going to reintroduce rates by some other name, whether levied by local authorities or by himself.

Question time is supposed to be about information. I do not know what information the Deputy is trying to elicit. I did not say that I was going to introduce rates.

Is there a comprehensive review of all types of proposed extra taxation which local authorities may be requested to implement and are lotteries also under review?

Lotteries would be one of the items for review.

These are under review?

It is one of the things being considered. To call it a review implies that they exist now. They do not.

Is there a comprehensive review in the Minister's Department at present in regard to all aspects of this matter?

There is, yes. This has been said so many times, but the Deputies do not hear it.

I did not get into detail.

Let me tell the Deputies. On 21 July, the day we had the budget, the Minister for Finance said:

The Minister for the Environment is studying the possibilities of enabling local authorities to gain access to new sources of revenue, other than rates. The Government should be in a position to take decisions on his proposals before the 1982 Budget is finalised.

That is the position.

Can we take it that what is involved there is the imposition of charges for services provided by local authorities? Will this happen before January when the councils are striking their rates? If it is going to happen, is it not the reintroduction of rates under another name?

The Government should be in a position to take decisions on his proposals before the 1982 Budget is finalised.

A few moments ago the Minister said that the Government had taken a decision in principle to introduce a form of local taxation and this is——

I am sorry, I do not like interrupting——

That is exactly what the Minister said.

What I said was that the Government have taken a decision which I have just read out here, that I should investigate matters of that kind.

At this stage, because of public concern and, in particular, of the concern——

A question, please. Deputy.

——of local authorities and members of local authorities, that there is to be a new form of taxation, would the Minister specify exactly what he means by local taxation or certain charges for certain services?

I do not know whether or not the Deputies opposite are in favour of local authorities being allowed to raise additional funds by way of charges. I would like an indication from them. The position is that the Government will be finalising their decision before the 1982 Budget. It is possible — and I will not know this until I complete my investigations — that the Government may decide not to go ahead with this matter at all. If we do decide to go ahead with it, the local authorities will then be told.

This is developing into a debate. One final supplementary question, please.

Can the Minister confirm that Deputy Burke, when Minister for the Environment, made a speech in December 1980 indicating that the Department were considering ways of introducing these local charges?

That is right.

That is wrong, not in December. What is the fuss about?

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