asked the Minister for the Environment if he will give details of any proposed changes in the financing of local authorities in the years 1985-87.
Ceisteanna—Questions. Oral Answers. - Local Authority Financing
16.
As indicated in the National Plan Building on Reality, 1985-1987, the farm tax will be collected by local authorities and applied for local purposes as a step towards reducing the dependence of local authorities on Exchequer financing. Legislation to give effect to this decision is being prepared. Any further changes in that direction that may be decided on would be announced in due course.
The Government have also decided that the existing scheme of malicious injuries should be abolished and replaced by a modified scheme and a Bill to give effect to this is being prepared by the Minister for Justice.
As the document the Minister quoted states that farm tax will be introduced "from 1986", we are not sure if that means on or after 1986. Are any major changes proposed in the financing of local authorities in 1985, one of the years mentioned in this proposed plan? Are there any proposals to remove the statutory obligation on local authorities to meet some of the cost of other bodies, such as the health boards, ACOT and the Office of Public Works?
There is no proposal to change the system for 1985. It is expected that farm tax will be applied from 1986 onwards. I have no other proposals for 1985 other than those that apply at the moment. As regards the statutory demands, they are being considered in the light of the review of the local government reform.
Is the Minister aware that many local authorities are heavily in debt to these subsidiary bodies? I understand Galway County Council owe over £2 million to the Western Health Board and nearly £1 million to the Office of Public Works. I also understand the position is the same in many western counties. Does the Minister propose to make any changes in the financing of local authorities affecting these matters in 1985?
As I said, the review and reorganisation of local government is taking place and these matters are being considered.
Does that mean there will be no change in 1985?
I said that the present arrangements will apply in 1985 and the farm tax will be introduced as and from 1986.
When will the review be completed? When does the Minister expect to have the report of the National Economic and Social Council on local authority financing?
I hope to have it very shortly.
When will the general review in the Department be completed?
When we have received that report it will form a very important part of that review.
Are we to take it that, despite the assurances which were given since this Government came into office by the Minister's predecessor, the Tánaiste, and the Minister himself over the past year, no decisions have been made by the Government in regard to local government reorganisation or local government financing? We have been told over the last two years that these matters were under consideration and decisions were about to be made. How long does it take this Government to make a decision on anything?
The position was made clear to the Deputy when he asked that question of the Taoiseach on the Order of Business.
May I ask a question about the financing of local authorities in the Dublin area in particular? In view of the fact that the Minister said yesterday that 62 per cent of the water charges have not been collected in the Dublin area, this is seen to have been a failure as a method of raising finances for local authorities specifically in the Dublin area, does he agree that there is a need to change that system in the immediate future?
When answering a question about the water charges yesterday I indicated that the position had improved in recent months in the collection area to which the Deputy refers. However, it is still far from satisfactory.