Vol. 455 No. 4
2 Miss Harney asked the Taoiseach when the Commission on Local Government Reform promised in the programme A Government of Renewal will be established; and the reason the commitment to initiate this work by Easter of this year has not been honoured. [12255/95]
I am circulating to Deputies details of a Government statement setting out the establishment of a devolution commission as promised by the Government in its policy agreement, A Government of Renewal, together with the membership of the devolution commission. The statement sets out the guiding principles for the renewal and future development of local government and the approach to be taken by the commission in overseeing this important programme of reform.
Government Statement on Local Government Reform.
Membership of Devolution Commission.
The Government wishes to announce the membership of the Devolution Commission which will oversee the process of local government renewal, as set out in a separate statement today.
Chair, Philip Flynn, President, ICTU,
John Boland, former Minister for Public Service,
Vincent Byrne,
Noel Dillon, County Manager, Cork,
Jim Doorley, KPMG Management Consulting,
Councillor Constance Hannify, Offaly County Council,
John Hurley, Secretary (Public Service Management) Department of Finance,
Anna Lee, Chairperson, Combat Poverty Agency,
Laura Magahy, Temple Bar Properties,
Brendan O'Donoghue, Secretary, Department of the Environment,
Anne O'Keeffe, IPA, Director and representative of Sub-county Review Group,
Councillor Jan O'Sullivan, Limerick Corporation,
Conor Skehan, Partner, O'Dea, Skehan and Associates,
Paddy Teahon, Secretary, Department of the Taoiseach.
Government Programme.
The Government parties, in framing their Policy Agreement, undertook to promote the local empowerment of people by renewing the system of local Government in order to return the greatest amounts of opportunities to an effective and accountable local Government system.
A substantial programme of work is already under way on a number of fronts:
—A Review Body began its work last January, to report by the end of 1996, on a modernised system of local government in towns, including those which have no separate local council at present;
—Consultants have been appointed, as envisaged in A Government of Renewal, to carry out a professional study of local finance. It will consider the expenditure needs of local authorities in the years ahead and the development of a fair, equitable and reasonable system of local government financing. This process will lead, after due consultation, to a Government White Paper on this subject, the first since 1972;
—County Strategy Groups are being set up at county level to consolidate the activities of the various groups involved in local development.
If, however, the system of local government is to be renewed as the Government propose, the work already under way must be set in a wider context and be complemented by other initiatives. In particular, as envisaged in A Government of Renewal:
—there must be a phased programme of devolution and a widening of the role of local government, with devolved functions observing the principle of subsidiarity;
—the local authorities must become the focus for working through local partnerships involving local community-based groupings, voluntary bodies, the private sector, and public agencies, with a particular focus on co-ordinating the efforts of existing groups such as County Enterprise Boards, Leader Groups and ADM Partnerships.
This statement sets out the Government's approach to the implementation of these commitments.
Guiding Principles
In its approach to local government renewal, the Government will proceed on the basis of the following general principles:
—subsidiarity: public services to be devolved to the level nearest those to whom the service is delivered, but with due regard to financial constraints, efficiency, and staffing implications;
—accountability: clear understanding of lines of responsibility and authority for the delivery of an appropriate service, with those who are involved in service delivery being answerable to the democratically elected council;
—integration: the provision of services at different levels and by different categories of public authorities to be integrated as far as possible;
—effectiveness: the best possible level of service to be provided, with due emphasis on quality considerations and value for money aspects;
—participation: the system of local representative democracy to be developed, as far as possible; the role of local councillors to be enhanced, thereby attracting greater interest in going forward for election; and, in parallel, vibrant community organisations to be promoted, especially in disadvantaged communities, with appropriate links to the formal local government system.
Government Approach to Local Government Renewal
Local government as a whole is big business, accounting for expenditure in 1995 of some £1.85 billion. The achievements of local authorities in housing, planning, infrastructural, environmental, community and amenity services are considerable and are fully acknowledged by the Government.
Eight regional authorities were established, and a re-organised local government system put in place in Dublin in 1994. There have also been significant improvements in the legal framework governing local authorities, freeing them to engage in general development activities and reducing the extent of Ministerial control on the exercise of their functions. The fact remains, however, that local authorities in this country have a more limited range of functions than their counterparts in many other countries.
The Government believes that a renewed system of local government can provide a more effective focus for the effective delivery of a wider range of public services, for the better development and well-being of local communities, and for promoting more local development and enterprise. Partnership and participation can be fostered through local government, and local identity and local loyalities can be harnessed to foster social inclusiveness, equality of opportunity and a tangible sharing of the burdens and rewards of society. Similarly, a local focus can facilitate integration of environmental considerations into local projects, plans and programmes.
Devolution Commission Mandate
Guided by these basic principles, a Devolution Commission is now being established by the Government, mandated to make recommendations so that:
—significant additional functions are devolved to the local government system on the basis of a phased programme;
—local authorities are meaningfully involved with policy and administration regarding functions which are not devolved directly to them:
—the local authorities become the focus for working through local patnerships involving local community-based groupings, voluntary bodies, the private sector, and public agencies,
—the efforts of local authorities and those of existing groups such as County Enterprise Boards, Leader groups, and ADM Partnerships are coordinated.
The Commission will be required to take full account of the financial and public sector staffing implications in making its recommendations and of any other costs, as well as the benefits involved.
Cabinet Committee on Local Government Renewal
Reports from the Devolution Commission will be considered, and put to Government for final decision, by a Cabinet Committee consisting of the Taoiseach, the Minister for the Environment, the Minister for Finance and the Minister(s) of State at the Department of the Environment.
Responsibility for the devolution programme has been placed under the aegis of the Taoiseach as Head of Government to highlight the priority attached to the task. Each Government Department is nominating a specific senior official to liaise with the Commission and to support its work. The devolution Commission will be invited to make a review of interim reports on a rolling basis with the first report expected by December 1995.
Devolution Commission Approach and Timescale
The Devolution Commission will work closely with the Cabinet Committee to ensure that action is taken quickly and effectively on the matters referred to it.
The membership of the Commission is announced separately today and reflects the different elements which have a role to play in developing that action. Thus, there are representatives of local and community groups, representatives of local authorities, both at the political and the management level, and representatives of Government Departments. There are also a number of independent members to ensure that a balanced approach is adopted.
The Commission has been asked to determine its essential Work Programme by end September 1995 and, therefore, to develop for Government consideration and decision, in a series of phases, statements of the specific steps (including legislative provisions, financial provisions, and transitional arrangements) recommended to renew the local government system. The first such statement is expected by the end of 1995; the time scale for subsequent statements will be agreed with the Cabinet Committee.
The Commission will consult with relevant organisations, both public and private, in developing its recommendations and take specific account of the operation of the Local Development Programme, especially the work of the County Strategy Groups.
In order to ensure that they work in tandem with one another, the Commission contains members who are also involved in
(a) the consultancy study on Local Government Finance;
(b) the Review Body on local government in towns.
I do not know if my question was put down at the correct time or whether it had the effect of expediting the Government decision but I am delighted the decision has been made. Has the Government decided the functions to be devolved to local government or is it a matter on which the commission will make a recommendation?
I want to give the Deputy credit for helping the Government to take this decision. Both her original question and this question were useful in getting the decision taken, and I will not pretend otherwise. Effectively this is a mechanism for making decisions about what functions should be devolved. The Government is of the view that one or two functions in the 16 Departments of State could more appropriately be carried out at local level and it will look at all Departments. It is appropriate that there should be a form of audit of Government functions with a view to identifying those functions which could more appropriately, in accordance with the principle of subsidiarity, be conducted at local level closer to the people.
This body, which contains a wide range of expertise in different areas, will be able, by combining senior Government departmental secretaries and people with outside experience and knowledge of local government, to identify such functions across the range of Government activities. Its recommendations will then be considered by a Cabinet sub-committee chaired by me which will include the Ministers for the Environment and Finance and the two Ministers of State at the Department of the Environment. We will act as a clearing house for these decisions before referring them to Cabinet. This is the most serious and comprehensive effort made since the foundation of the State to devolve functions to local authorities on a systematic basis. There have been various moves in the area of devolution in the past but none of them has been as systematic or widespread as this one.
I have looked at the list of members and if I recall correctly none of them was a member of the original Barrington review group. If this is the case it is a pity. Will this commission be required to report annually to the Oireachtas as recommended by Barrington?
The commission will report to the Government. Its work programme will be presented in September and it will present its first report in December; thereafter it will furnish its reports on an agreed cycle. There is no reason these statements being furnished to the Government should not also be made available to the Oireachtas. I am sure there will be no problem in allowing for debate on these matters in the Oireachtas at the appropriate time.
In relation to the commission being established, I take it that the Government is now committed to a new system of local government financing.
As the Deputy will see, when he has a chance to read the statement, three separate exercises are being conducted. One is a consultancy study on local government financing which is being done by KPMG Management Consulting. A study has been initiated by the previous Government on sub-county level government, in particular town government; in other words how to pay for local government and the structure of local government. There is a third study which is designed to answer the question in relation to what local government should be doing and what extra things local government can do that it is not already doing. There is a considerable degree of complementarity between these three studies and to ensure they do not go in separate directions we have provided for cross-representation. There will be a representative of KPMG Management Consulting and a representative of the body set up to examine sub-county level government on this devolution commission. The work of each one of the three, which is separate work, will complement and be consistent with the others.
I take it that the Government statement on local government reform, a professional study by KPMG Management Consulting, is on a financing of local authorities. Is it envisaged that KPMG Management Consulting will specifically examine the property tax issue and its relationship with water rates and, in general, a system of raising local taxes?
Any question about the consultancy study, which is being commissioned by the Minister for the Environment would be better addressed to him but I can tell the House — and the Minister who is here can confirm this — that an open remit in terms of all the issues arising in local government finance is given to the consultants who will be free to examine all options.
Does that include property tax?
No option is being pointed out to them or excluded from their consideration. They will be free to examine all those issues and to make any recommendations they wish on which the Government will then decide.
We are talking about a new local tax.
It sounds ominous.
