Vol. 448 No. 5
3 Miss Quill asked the Minister for the Environment if he has commissioned a professional study to establish a fair, equitable and reasonable system of funding for local Government; and if he will make a statement on the matter. [2343/95]
43 Mr. M. McDowell asked the Minister for the Environment if he has commissioned a professional study to establish a fair, equitable and reasonable system of funding for local government; and if he will make a statement on the matter. [2287/95]
I propose to take Questions Nos. 3 and 43 together.
In line with the commitment in the policy agreement, A Government of Renewal, I propose to commission as soon as possible a professional study to see how a fair, equitable and reasonable system of local government financing can be introduced. The Government's objective is that this study should lead to the publication of a White Paper and facilitate development of maximum consensus on this important issue.
I congratulate the new Minister for the Environment and his Ministers of State, Deputies McManus and Allen, and wish them well in their new posts.
The Minister said he will commission a professional study as soon as possible whereas in the policy document, A Government of Renewal, we were told that the Government would immediately commission such a study: it was “immediately” in December 1994 but is now to be commissioned “as soon as possible”. Will the Minister say what will happen local authorities in the meantime? Will he accept that most local authorities, particularly those in urban areas such as Cork, Limerick and Waterford have been brought to the brink of bankruptcy, are not now in a position to deliver the most basic and essential public services such as street cleaning, the maintenance and repair of footpaths, proper public lighting and refuse collection to even a minimum standard? That begs the question: what will happen those local authorities in 1995; how long must they wait until this Government puts in place a proper system of funding? What action will be taken by the Government in 1995 to enable local authorities fulfil their functions?
I thank Deputy Quill for her kind comments on my appointment as Minister for the Environment; no doubt she will allow me at least a few weeks before fulfilling all of the commitments in A Government of Renewal. While I know there is not a full Dáil term ahead, we should be allowed some flexibility in relation to our timescale in implementing the very important issues which have been contentious for as long as I, and those around me, have been involved in politics.
But when you say "immediately" it would appear that does not mean "immediately".
One very important matter — with which the Deputy may disagree — is that there be the maximum possible degree of consultation with all relevant groups, in advance of setting the terms of reference for this important study. It was one of the critical issues raised by the representative bodies, for example, the General Council of County Councils, the Association of Municipal Authorities of Ireland and the representative bodies of the County Managers' Association. I immediately set in train those consultations. I met the General Council of County Councils last week and asked its members to present a submission to me on the terms of reference, since they consider it very important to get the terms of reference right rather than launch precipitously into a fundamental review of this sort which will have reasonance for the future of local government well into the next century. I want to get the terms of reference right and will do so as expeditiously as I can. Certainly, the study will be well established and, hopefully, well under way early this year.
Does the Minister accept that this type of reporting and study has continued over the past 20 years, for which there is saying in Cork: "we are always one report away from action". Would he agree that what local authorities need — and those who subscribe to the maintenance of local authorities, like commercial ratepayers, and those who pay service charges — is a proper system of funding out in place? Can the Minister give a date — he said "immediately" in A Government of Renewal and “as soon as possible” in the course of his reply to this question — as to when precisely this study will commence? Can he set a time frame for its completion? In addition, can he state at what point the White Paper will be published and inform the House what will be the composition of the membership of that study group; for example, will Members of this House be involved, or are we going anywhere apart from talking about the issue?
I have enjoyed two years only in office so far and consider I have a reasonable record of "doing" rather than "talking" within that period. Within the period that the Deputy's Government was in office in the not too distant past we would have expected to have seen movement on issues of such fundamental importance to us.
On the specific question of membership of the study group, I would not insult the relevant organisations by asking them for submissions had I made up my mind on such issues. I am in the course of a genuine consultation process. I have requested submissions from the representative bodies; I want their views. The structure and composition of that study group will be decided as soon as those submissions have been received and studied in my Department, not in the distant but in the "immediate" future, so that we can set it up, get it right and, finally, put local government on a sound financial footing into the future.
On the position in Cork, I note that revenue improved somewhat in 1994 but there are particular, horrendous problems — like the expected pay-out in Cork on foot of public liability claims of £2.3 million in 1995 — also fundamental issues which must be addressed if we are to put local government funding on a sound equitable basis.
Until such time as a proper system of local authority funding is put in place, will the Minister endeavour to introduce some type of equity into the distribution of the rates support grant so that local authorities will receive a proportion of the rates support grant commensurate with their needs and resources, as was promised in the Barrington and a number of other wellresearched reports?
We are having an extension of the subject matter of this question.
I do not agree, and have already argued from both sides of this House, with all that was contained in the Barrington report, on which no doubt we shall have time for a fuller debate in due course. I am mindful to ensure that a proper funding mechanism is put in place to deal with the needs, in particular, of urban areas.
What will happen in the interim?
I am calling Question No. 4.
