Deirdre Clune
Question:6 Deputy Deirdre Clune asked the Minister for the Environment, Heritage and Local Government the reason the home choice scheme applies only to newly built properties; and if he will make a statement on the matter. [36497/08]
Other Questions.
Housing Market.
Pat Breen
Question:13 Deputy Pat Breen asked the Minister for the Environment, Heritage and Local Government his views on whether the home choice scheme will keep housing prices artificially inflated and risks luring first-time buyers into negative equity; and if he will make a statement on the matter. [36488/08]
Bernard J. Durkan
Question:50 Deputy Bernard J. Durkan asked the Minister for the Environment, Heritage and Local Government the action he will take to ensure the recent housing purchase proposals he announced do not lead to the acquisition of negative equity in the housing market by the vulnerable first-time house buyer sector; and if he will make a statement on the matter. [36422/08]
I propose to take Questions Nos. 6, 13 and 50 together.
As indicated during the debate on budget 2009, it is important that the ongoing process of correction in the housing market is not artificially interfered with. Given that sentiment in the housing market is heavily dependent on wider sentiment in the economy, the Government's approach is focused on the broader economic fundamentals and on ensuring, ultimately, that the housing market is underpinned by these.
Any housing specific interventions must be targeted in nature and designed to achieve specific outcomes. The announcement in the Budget of the introduction, for a limited period, of the new home choice loan product for certain first-time buyers is fully in line with this policy. It is designed to respond, in a targeted way, to a very specific set of circumstances in the housing market whereby prospective first-time buyers, who would previously have been in a position to access mortgage finance from one of the financial institutions are not currently in a position to do so due to the impacts of the credit crunch. The initiative provides no incentive to enter the housing market; it will merely facilitate certain first-time buyers who have decided to purchase a home at this time.
Home choice will be available to first-time buyers of new houses, subject to a maximum loan of €285,000, depending on income, and a maximum loan to value ratio of 92%. The loan term will be up to 30 years. A minimum income of €40,000 will be required and a detailed credit policy is now being finalised. A single standard variable interest rate product, related to the prevailing rates available from commercial institutions, will apply. All applications will be rigorously assessed having regard to an applicant's ability to pay, credit history and all other aspects of the formal lending policy. An applicant's ability to pay will be also stress-tested to assess ability to repay at current rates and in the event of significant interest rate rises.
The scheme applies to new houses because a significant majority of first-time buyers purchase new houses. The average cost of a new house is almost 14% lower than that of second-hand houses and, as such, it was considered appropriate to target the scheme towards properties which are more affordable for first-time buyers. I do not anticipate this will have an appreciable impact on house prices nor do I think it will do anything to distort the market correction.
I thank the Minister of State for his reply. The Fine Gael Party is concerned about any type of intervention in the housing market. I accept the Minister of State believes this measure will not result in any intervention in the market.
Our main concern is why this measure applies only to new and not second-hand houses. This, to us, appears to be a bail-out of the property developers. There should be no intervention in the market at a time when it is declining and prices are falling. It is anticipated that prices will drop by a further 20% to 25% next year. We want to ensure homeowners do not end up with negative equity.
Also, the scheme sets a lower ceiling limit of €285,000 in respect of the purchase of a home. We are concerned this too will result in intervention in the market. Perhaps the Minister of State will explain why the scheme is specifically tailored to new homes.
The Deputy has asked a number of questions. The new home choice loan cannot be construed in any way to be entering the sub-prime area. This is a targeted approach for first-time buyers and there is no incentive. It aims to deal with people who would have been able to get a loan in the past. It is well known nationally that a person looking for a €300,000 mortgage, with financial institutions looking for 20 % as a deposit, would require €60,000. We all know that is not feasible for young people today. Our target is those who have already decided they want to buy a home, who have the necessary income to make repayments on a mortgage but do not have a €60,000 deposit. We are facilitating a 92% loan to value mortgage.
As to why we did not include second-hand houses, research indicates that over 70% of first-time buyers purchase new houses. Information also indicates a differential of approximately 14% between the purchase of a new and second-hand house. For that reason we have targeted new homes.
I thank the Minister of State for his response. I wish to pick up on two or three specific areas, with the key point being the purchase of new or old builds. An important point is that the ceiling of €285,000 is the determining factor, so it does not matter if the mortgage is taken on a new or old build. That is the ceiling. In welcoming this proposal, we should realise that it is an impetus which enables people to buy a home in a particular locality, be it new or old. As there is a ceiling, there is no difference if the house is old or new. The Minister of State's argument does not stand up with regard to the ceiling. Because the scheme is specific to new builds, there is an impression that we are witnessing a bail-out.
Another concern is highlighted by the Minister of State's reference to people who can only get an 80% loan to value mortgage from a bank. Two things are happening at the moment. House prices, although still overly expensive, are falling and it is becoming a buyer's market; and if a bank refuses a loan because it does not believe a person can make the repayments, the council is stepping in, with the implication of some private lending. An exposure to risk is being created.
Given that the Minister has set a ceiling, would it not be more appropriate in the roll-out of the scheme that the ceiling be the determining factor? It should not matter if the scheme allows people to buy new or old builds.
I will take the matter of the intervention first. I did not state it would apply to somebody who could not get a loan because he or she could not make the repayments. I put on the record that this applies to people who are in a position to make repayments but do not have the 20% deposit.
This has nothing to do with a bail-out of builders, involvement in the construction industry or a housing market correction. It is a short-term measure to assist people who have already taken a decision to buy a house and who cannot get a mortgage because they not have the deposit. We have targeted those people.
Distinctions have been made in the past regarding new and second-hand homes. There was an issue with the stamp duty which applied to first-time buyers of second-hand homes, and when the Government changed this some time ago some people felt it risked raising prices, which we do not want. We do not want to get into raising the prices of homes or involving people in such a process.
It is a targeted scheme without incentive. It will be there for that category of people for six to 12 months and will be reviewed.
The scheme's ceiling is seven times a person's salary, which seems grossly irresponsible, particularly in light of what has happened in the sub-prime market in the US. Will the Minister of State give a reassurance that there will not be a repeat of what happened in the past? What changes will be put in place to ensure all mortgages are properly stress-tested and that we return to a more traditional method of providing loans up to two and a half times salary? That is much more prudent. The introduction of this scheme could get us into trouble again.
I assure the Deputy and the House there is no question of seven times a salary being advanced. The minimum income is €40,000 and the maximum loan is €285,000. The rule of thumb which will be applied by the four designated local authorities and the central office, backed up by the Affordable Homes Partnership, is that approximately five times salary or less will be advanced. The insurance is that the people involved must be in a position to make repayments that will not go above one third of salary. That is a safety feature and an important part of the loan structure. We are not putting people in a position where they will not be able to make repayments. This loan is targeted at those who have the income to make repayments but who do not have the deposit.
I will clarify a few matters with the Minister of State. The minimum earnings to qualify for the home choice scheme are €40,000 and there is no maximum.
That is correct.
Is there a shelf life for the operation of the scheme? Will it be for the next 12 months or will it go into the foreseeable future with an indefinite end point? As there is no maximum earnings threshold and the maximum purchase price is €285,000, why is the purchase of old builds not being facilitated? It does not make sense. If somebody can purchase a house at that value in a declining market — this will be realised in the next six to 12 months — will the Minister of State not consider allowing old builds in the scheme? If he does not, the clear implication is that this is a developer-driven product.
I have explained the position on second-hand homes. The information available to us is that over 70% of young people buy new homes and there is a 14% to 15% differential between the price of a new home and an existing home. What was the first part of the Deputy's question?
Is there a shelf life to the scheme?
The intended time for the scheme to be in place is from six to 12 months. I am prepared to review it in light of the success of the scheme or otherwise.
As the market is declining and should be correcting itself, we are pouring cash into it.
I do not accept that. It is a terrible interpretation to put on an opportunity——
It is fact.
——for couples interested in buying a home.
It is an opportunity. That is right.
I reiterate there is no incentive in this home choice loan. It is offered at a variable rate in the same way as a loan from any other financial institution. The only difference is that it is targeted at a group of people and will have a loan to value of 92%. There is no incentive and no intervention by Government or my Department in the construction industry. If it has a plus, we will welcome that also.
Local Authority Housing.
Ciaran Lynch
Question:7 Deputy Ciarán Lynch asked the Minister for the Environment, Heritage and Local Government if he intends that, under the Housing (Miscellaneous Provisions) Bill 2008, local authorities should form management companies or employ management companies in order to charge rents or make other charges in regard to dwellings that it owns. [36392/08]
The provisions of the Housing (Miscellaneous Provisions) Bill 2008 are designed to provide a more transparent framework for the delivery of a diverse range of social housing options. The Bill clarifies the role of housing authorities in regard to the management of housing which they own or lease under the rental accommodation scheme or other arrangements. This includes the power to determine rent and other charges in respect of such dwellings. The Bill also provides for the making of a rent scheme to set out the manner in which rents will be determined.
It does not introduce any new requirements in respect of the formation or employment of management companies. Section 30 of the Bill provides that some or all of a housing authority's management functions may be delegated to a designated body. Such delegation is confined to a body including residents and these powers already exist under section 9 of the Housing (Miscellaneous Provisions) Act 1992.
The question of the formation of management companies must be addressed in the context of developing proposals on the tenant purchase of apartments. I hope to bring forward proposals in this regard during the passage of the Bill through the Oireachtas.
I am uncertain as to what the Minister of State has just stated, because the legislation, which I have to hand, states that local authorities will be getting into the business of establishing management companies. To push out the question further, will such management companies engage with matters such as the rental accommodation scheme? I can envisage a scenario in which local authorities would operate management companies were the sale of flats scheme to be rolled out as there would be a need for them in such circumstances.
However my question is simple. The legislation states the Government will facilitate a scenario in which local authorities will get into the business of running management companies. If my interpretation is correct, this is more likely to take place in the rental accommodation sector. This will create three outcomes. The first is an additional——
Does the Deputy have a question?
I shall frame three questions. Will this create an additional charge for tenants under the rental accommodation scheme? How will the legislative framework for this measure be pitched? Will it be included in the Housing (Miscellaneous Provisions) Bill although regulation is still awaited in respect of the private management sector? Third, although councils will be obliged to get into management, they will be unable to manage half an apartment block. What will this mean for social integration and social housing? If my understanding is correct, the only way this will operate is that one will have entire apartment blocks of rental accommodation scheme tenants. That would constitute ghettoisation, not social integration.
As for the last point, Government policy is to have integrated and sustainable communities. Consequently, I assure the House there is no question of either my Department or the front-line Department reverting to the old position of having local authority estates. Housing developments must be sustainable communities and this remains the policy of the Department.
As for the new Housing (Miscellaneous Provisions) Bill, it provides a more developed legislative basis for the rental accommodation scheme, RAS. It provides for the general terms and conditions that should be included in local authority agreements with accommodation providers, as well as the terms to be provided in the tenancy agreement between the accommodation provider and the RAS tenant. The Bill also provides for termination of these agreements and the payment of a rent contribution by the tenant to the housing authority. The payment of this contribution by the tenant is an obligation of the tenancy agreement. The Bill updates the powers of local authorities to specify rents, clarifying these cover both the rents of dwellings of their own and those which they lease, including arrangements made under the rental accommodation scheme.
Moreover, when the Bill comes before the Dáil, I intend to incorporate a provision within it for a scheme for the purchase of apartments or flats. This request has been on the table for a long time and we await some clearance from the Attorney General's office in this regard. If this happens and hopefully it will, obviously it will give rise to a mix of public and private apartments and flats. At that point, some form of arrangement will be required between the public and private sectors as regards the management for public areas, roofing and so on.
I thank the Minister of State for his response. I have asked the Tánaiste and Minister for Enterprise, Trade and Employment about the delay in respect of the property services (regulatory authority) Bill many times, as well as raising the matter on the Order of Business. What is the position regarding the cross-departmental committee that was set up by the Taoiseach? Is the Minister of State in a position to provide Members with a progress report in this regard? The legislation must be put in place as soon as possible. This has gone beyond a joke because of the great number of apartment complexes nationwide. While I recognise this is a complex area, the Tánaiste stated that it would be necessary to bring either a single Bill or an omnibus Bill through the Oireachtas to regulate such property management companies. Meanwhile, although a regulator is in place, Members are not being provided with full information as to what work is going on in the background. The Minister of State may be in a position to provide more information in this regard.
My Department has no responsibility in that area. It pertains to the Companies Acts and is a matter for the Department of Enterprise, Trade and Employment. However, as the Deputy noted, a debate is taking place on this matter. I understand the Department of Justice, Equality and Law Reform will bring forward its proposals on this issue. However, it is not a specific matter for my Department.
While it is a cross-departmental issue, the delay is a matter of concern.
I have concerns about the provisions as outlined by the Minister of State because they will play into the hands of many, if not all, of the county managers. My impression is that county managers wish to offload their responsibilities in respect of housing in so far as is possible. They are attempting to off-load as much responsibility as possible onto voluntary housing agencies and this appears to be another method for so doing. A mechanism will exist whereby management of housing can be dealt with by a management company, thereby absolving the councils of responsibility. Many voluntary housing agencies do good work and I do not condemn them, although I have a bigger problem with management companies. However, an issue arises in this regard pertaining to accountability.
The best type of social housing is that which is directly built, provided, allocated and managed by county councils. While I agree with the point about the need for integrated development, we have many successful council housing estates. In the past the proportionate provision of council housing estates was much higher. While only approximately 5% of what is built at present is council housing, the figure used to be up to 30%. I am thinking of locations that have turned out excellently in Crumlin, Drimnagh, Lucan and so on. These were old council estates that were directly managed and provided by the council that were occupied by working people, many of whom went on to buy their houses.
I am worried about these proposals. The management of South Dublin County Council——
We are well over time. I call an tAire Stáit.
——wants to off-load its responsibility and it should not be allowed to so do.
First, I wish to reassure the Deputy on this matter. At present, local authorities have certain powers under the 1992 Act, which they use in at least three ways that I can think of. First, they use them when an estate gets together and decides to set up its own co-operative management. This takes place in some, but not all, local authorities and works well. In an estate of 20 or 30 houses, the householders may decide to set up a co-operative among themselves in respect of maintenance and so on. Second, local authorities get involved in many other activities that are not necessarily their responsibility. For example, they set up joint management companies in respect of leisure or tourism facilities. Third, they also do so in respect of voluntary housing. As the Deputy is aware, although my Department pays for it through the local authorities, in some cases the latter also have management responsibilities.
These powers already exist and I will not extend them or provide other opportunities in this regard. However, were we to proceed with the sale of flats, as I do not doubt we will, I would be obliged to make accommodation in the Housing (Miscellaneous Provisions) Bill itself. For example, in a unit of 30 dwellings in which ten are purchased and 20 stay public, we will be obliged to enter into new arrangements. I will be obliged in the Bill to give the power to local authorities to set up some form of management arrangement for such a scenario. I intend to do so during the passage of the Bill. However, the Deputy will have plenty of opportunities to discuss this matter during the debate.
I wish to ask a brief supplementary question.
We are nearly four minutes over time on this question.
It simply is to clarify that point.
The Deputy should be very brief.
Section 30 of the Bill states the Minister will empower local authorities to make charges for dwellings they do not own but which may be subject to a contract of a lease. I understand this pertains to the rental accommodation scheme. A management company or housing authority may pass on management and service charges to tenants. This looks as though it will constitute an additional charge for people.
The conundrum in this regard is that the legislative framework to require the sale of flats requires this provision. Consequently, the Government has no inhibition in this regard. Although the Minister of State has outlined the legislative framework to allow the sale of council flats to take place in this provision, he has not spotted that is the required legislative framework.
We must move on.
The Government will now be creating massive——
The Deputy should ask a question.
Will this end up as an additional charge on tenants under the rental accommodation scheme? Will the legislation have to be incorporated into the private sector provisions outlined by Deputy Terence Flanagan? How will it lend itself to a social housing integration process if we end up in a situation whereby local authorities take charge of entire private estates?
We should not assume that local authorities will take charge of entire private estates.
I am not assuming; it is in the legislation.
We must move on. We are already five minutes over our time.
As I noted earlier, section 30 of the Bill provides that some or all of a housing authority's management functions may be delegated to a designated body. Such delegation is confined to a body including residents and these powers already exist under section 9 of the Housing (Miscellaneous Provisions) Act 1992. I am not adding to those functions in this instance but I will have to make changes when I deal with the sale of flats.
Environmental Policy.
Ruairí Quinn
Question:8 Deputy Ruairí Quinn asked the Minister for the Environment, Heritage and Local Government the steps he is taking to address the four key environmental challenges, including limiting and adapting to climate change, identified in the Environmental Protection Agency report on the state of the environment, published in October 2008; and if he will make a statement on the matter. [36414/08]
Róisín Shortall
Question:19 Deputy Róisín Shortall asked the Minister for the Environment, Heritage and Local Government the steps he is taking in response to the finding in the state of the environment report published by the Environmental Protection Agency in October 2008, that under the most favourable scenario Ireland’s greenhouse gas emissions will exceed the proposed reduction target for 2020 by seven million tonnes, that biodegradable municipal waste diversion targets will be missed by 800,000 tonnes and that emissions of nitrogen oxides are to remain high; and if he will make a statement on the matter. [36419/08]
Róisín Shortall
Question:22 Deputy Róisín Shortall asked the Minister for the Environment, Heritage and Local Government the steps he is taking to address the issue identified by the director of the Environmental Protection Agency, namely, that Ireland’s environment is an asset under threat and that Ireland is not progressing at a sufficient rate in relation to environmental quality; and if he will make a statement on the matter. [36418/08]
Sean Sherlock
Question:29 Deputy Seán Sherlock asked the Minister for the Environment, Heritage and Local Government the steps he is taking to address the four key environmental challenges for Ireland, including complying with environmental legislation and agreements, identified in the Environmental Protection Agency report on the state of the environment published in October 2008; and if he will make a statement on the matter. [36417/08]
Pat Rabbitte
Question:38 Deputy Pat Rabbitte asked the Minister for the Environment, Heritage and Local Government the steps he is taking to address the four key environmental challenges, including mainstreaming environmental considerations across all sectors of the economy, identified in the Environmental Protection Agency report on the state of the environment published in October 2008; and if he will make a statement on the matter. [36416/08]
Pat Rabbitte
Question:59 Deputy Pat Rabbitte asked the Minister for the Environment, Heritage and Local Government the steps he is taking to address the four key environmental challenges, including reversing environmental degradation through water pollution and the conservation status of habitats, identified in the Environmental Protection Agency report on the state of the environment published in October 2008; and if he will make a statement on the matter. [36415/08]
I propose to take Questions Nos. 8, 19, 22, 29, 38 and 59 together.
Ireland's Environment 2008, which is the Environmental Protection Agency's fourth state of the environment report, was launched by me on 8 October 2008. It concludes that the quality of Ireland's environment is relatively good overall, although it is subject to increasing pressures as a result of the rapid expansion of our economy. The report identified the following four key challenges for Ireland in the coming years: limiting and adapting to climate change; reversing environmental degradation; mainstreaming environmental considerations; and complying with environmental legislation and agreements. The challenges are significant and we must do more to deal with them.
Climate change is widely acknowledged as the most threatening global environmental challenge facing humanity. I have detailed the Government's response to this challenge in my reply to Question No. 1 on today's Order Paper.
While Ireland's water quality remains of a high standard, maintaining this standard is one of the most serious environmental challenges we face. Implementation of the water framework directive, the nitrates action programme and the Waste Water Discharge (Authorisation) Regulations 2007 are key to securing and maintaining good water quality. The highest ever level of annual funding, €560 million, is being made available for water services investment in 2009. This is the clearest possible statement by the Government of the priority we are according to preserving and protecting our water resources as a key aspect of environmental quality.
The EPA report refers extensively to the report, The Status of EU Protected Habitats and Species in Ireland, which I published in May 2008. We are actively taking steps to maintain and restore habitats, particularly in protected areas. This requires effective prioritisation, planning and execution, as well the full involvement of Departments, local authorities, landowners, farmers and other stakeholders.
The EPA estimates the number of contaminated sites in Ireland at between 1,980 and 2,300. Two national initiatives are under way on establishing inventories of historic mines and unregulated waste disposal sites. I intend to introduce regulations to provide a legal framework for remediation of high risk waste disposal sites.
Key drivers for environmental protection are EU environmental legislation and multilateral environmental agreements. Some 200 items of EU environmental legislation, including more than 140 directives, have now been transposed into Irish law and are being implemented. Ireland has also ratified a range of multilateral environmental agreements. Compliance with environmental legislation is vital at national level and critical in terms of our commitment to working with the EU.
The report recognises that air quality in Ireland is generally of a high standard. The national programme on transboundary pollutants provides for the progressive reduction of these emissions by 2010 through a range of policies and measures in different sectors.
One of my main priorities is to improve dramatically the manner in which we manage our waste. The international review of waste management policy, which I have recently commissioned, will cover a wide range of issues to help identify how best to proceed with further efforts to reduce waste levels, improve recycling rates and deliver equitable and cost-effective waste management solutions.
The programme for Government accords a high priority to environmental sustainability and the integration of environmental concerns into broader policy formulation.
Additional information not given on the floor of the House.
Since coming into office, I have increased significantly the resources available to Comhar to undertake policy analysis across the broad range of issues in sustainable development, and the representation of environmental issues in social partnership will be addressed in the review of Towards 2016.
Overall, it is a firm objective of Government to work towards a clean and safe environment for all. The EPA report makes a major contribution to awareness and debate on the environment and sustainable development in Ireland. It will inform and guide policy making and individual action in these areas over the years ahead.
The Minister outlined the rose tinted version of the EPA report but he failed to refer to the comments made by the director of the EPA, Dr. Mary Kelly, when she launched it.
I launched the report.
When she attended the Minister's launch, she stated: "We are not making headway and we are not progressing at the rate we need to." The report described our environment as under threat. In regard to the four key challenges, it found that under the most favourable scenario, Ireland's greenhouse gas emissions will exceed the proposed reduction target for 2020 by 7 million tonnes and that we will exceed the target by 1.4 million tonnes per year. The biodegradable municipal waste diversion targets for 2016 will be missed by 800,000 tonnes. Issues also arise in regard to landfill degradation.
Does the Deputy have a question?
The report found that serious obstacles had arisen to progress. That also appears to be the opinion of Dr. Kelly.
What concrete steps is the Minister taking to address the challenges set out in the report? There is a need for radical action now rather than in the future. Biodiversity loss represents a serious threat to our environment and if we do not act now, it will be too late in the future. Funding has been cut for the national parks and wildlife service which protects biodiversity. Less money is available for landfill remediation. The money for water services is welcome but the serious problems which have arisen in this regard have to be addressed. Landfill pollution will also have a detrimental influence on water quality. What concrete measures will the Minister implement over the next three years?
Deputy Tuffy is selective in quoting the comments of the director of the EPA at the launch because she went out of her way to thank me for the additional resources and staffing made available to the EPA. In regard to the Deputy's question of what can be done now, I have provided for record increases in the EPA's resources and staff complement at a time of major budgetary constraints. I did so because I wanted the best available data. The EPA has produced several excellent reports.
If I was to liken Ireland's environment to a student's report, I would say: "Not bad but could do a lot better". I have never underplayed the state of the environment or the challenges we face in meeting our Kyoto commitments. The EPA has projected that we are off target and has identified the agriculture and transport sectors in particular. I have outlined the initiatives I have taken in these sectors. I do not want to repeat myself because we can dwell too much on climate change.
The Minister should conclude.
In terms of the water framework directive, which is very important, a total of eight river basin districts, RBDs, have been identified on the island. Three of these are international RBDs in that cross-Border waters are shared with Northern Ireland, four are wholly within the State and one is wholly within Northern Ireland. The environmental objectives of the directive are to be achieved through the implementation of the river basin management plans, which will include programmes of measures. The Deputy has acknowledged the record increase of 19%, up to €560 million, which has been welcomed by local authorities. This is the practical measure that I, as Minister, have introduced.
The director may have thanked the Minister but she was just being polite because she was also critical when she said we were not making headway on the environment. That is a major criticism if we have a Green Party Minister for the Environment, Heritage and Local Government. No progress has been made on climate change. Nothing in the carbon report could be pinpointed. The 1% reduction has nothing to do with the Minister. If we reduce emissions in the coming years it will be because of the recession. What is the Minister doing? When will he make sure there are extra buses on the roads? I do not refer to a sustainable transport plan but to buses on the roads.
Will the Minister consider the Labour Party suggestion to set up a national forum on climate change to drive this issue? It is not being driven and the Minister needs help from some body to get momentum. Will the Minister consider abolishing carbon offsets and using the money for buses on the roads?
The Deputy wishes to talk about climate change but her record on this is appalling. It is oppositional.
I did not know I was in government.
Everything I have tried to do on climate change has been opposed. There is such a thing as constructive opposition. When I was in opposition, if the Government did something good on climate change, my party supported it. On a small initiative, such as the introduction of energy efficient light bulbs, Deputy Tuffy was first out of the traps——
No, I was not. That is not true.
She is on the record as saying——
That is not a fact.
Perhaps she is trying to rewrite history but RTE has coverage of what she said when she ran on to the plinth——
I said there are legal problems, which have come to pass.
She also said that CFLs were dangerous, trying to spook people. She probably succeeded to some extent. This is a good initiative.
We still do not have that change.
The Labour Party opposed the increase in excise duty, something that will reduce approximately 150,000 tonnes. Some initiatives may not be palatable but what is required is courage and leadership.
The Minister did not have the courage for a carbon tax.
Deputy Tuffy does not have that courage and those leadership qualities.
Local Government Reform.
Phil Hogan
Question:9 Deputy Phil Hogan asked the Minister for the Environment, Heritage and Local Government when he will publish the White Paper on local government reform; and if he will make a statement on the matter. [36532/08]
I published the Green Paper, Stronger Local Democracy — Options for Change, in April 2008. The Green Paper presents a set of options which share a common theme of strengthening local democratic leadership. For example, Stronger Local Democracy — Options for Change proposes a regional mayor for Dublin to meet the strategic challenges the city faces. The paper also suggests that local leadership, accountability and connection with the citizen would be achieved through the provision of directly elected mayors with key powers of initiative in other areas. A suite of further proposals on issues such as town government, participative democracy, regional governance and service delivery are also included in the Green Paper.
Stronger Local Democracy — Options for Change represents the initial phase of a transparent, inclusive policy formulation process. Its purpose was not to arrive at a single solution but to present options for further consideration. Following the publication of the Green Paper, my Department conducted a public consultation process to inform the drafting of the White Paper. The consultation process included a series of six regional seminars held over the summer, to gather as full a range of perspectives as possible.
I am considering the outcomes of the consultation process, including the many written submissions I received. I hope to finalise the White Paper on local government by the end of the year. It is my intention to see a stronger, more vibrant and more accountable form of local government at the end of this process.
I refer to two initiatives in the budget, the second home levy and the car park levy. Will the Minister give details on how these will be administered and how the money will be collected? Will he confirm that the money will be available for local authorities to spend?
I welcome any response to those questions. The scheme cannot be implemented. As someone who has served on a local authority, in opposition and in power, I refer to connectivity between national and local government. Does the Minister see merit in the idea that strategic policy committees of local authorities, which should have a strategic role in the development of regions, would be better served by having Oireachtas Members from the area included? This would be the same as policing committees facilitating Oireachtas Members. Is this a consideration he will examine when drawing up the White Paper?
Will the Minister commence the section of the Local Government Act that allows towns to set up what were town commissions and are now called town councils? This has not been commenced since the legislation was enacted. Many towns want to do so.
The matters referred to by Deputy Terence Flanagan will be dealt with by the Minister for Finance in the forthcoming Finance Bill. In the context of the White Paper, we are examining further initiatives for extending the revenue base of local authorities, which is what the tax on second homes is all about. I hope Deputies in the Labour Party see this as an equitable and progressive measure. Clearly it is aimed at those who have the money to have a second, third or fourth property.
Deputy Lynch referred to strategic policy committees. I was delighted to launch the policing committees, which has enhanced local government. Local authority members want an input. I will take on board the Deputy's suggestion, and what Deputy Tuffy suggested, which will be dealt with in the White Paper.
Written Answers follow Adjournment Debate.