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Seanad Éireann debate -
Friday, 7 Mar 1924

Vol. 2 No. 21

LOCAL GOVERNMENT (COLLECTION OF RATES) BILL, 1923—SECOND STAGE.

Motion made and Question proposed: "That this Bill be now read a Second Time."

I desire to make some remarks on the Second Reading of this Bill. I do not in any way wish to challenge the necessity for drastic measures in the collection of arrears, and I have got no sympathy for people who wish to shirk the payment of their arrears. I do, however, think that the facts in connection with Local Government during the past years should be taken into account and known to the Seanad, so that regard should be had to the special circumstances of certain areas in which the arrear list is specially heavy. A study of the actual rates over past years is exceedingly interesting. The Government have supplied a return to the Dáil giving particulars of rates in the year 1914, and the years 1919-20, 1920-21, 1921-22—a most complete and valuable document. It gives the rates in each district area throughout the whole of the Saorstát. We get the extraordinary fact that in the year 1914 there is a great similarity in the rates throughout the whole country. They are all in the region of between 3/- and 3/6. The list was of such a length that I have not examined every one, but I find an extraordinary closeness between those rates. I am referring now to rates on land in the rural areas.

I have taken at random four counties, namely, a district of Carlow, where the rate is 3/-; a district of Clare—Kilrush—where the rate is 3/5; Bantry, where the rate is 3/6, and my own district of Waterford, where the rate is 3/5. When we come to examine these districts for the years 1921-22, and 1922-23, we find an extraordinary disparity. I had to take the years 1921-22, and 1922-23 together, because in 1921-22 they were exceptionally high owing to the withdrawal of the grants. These grants were restored the next year, and if you take both together and divide by two, you get a fair rate for the two years. They are:—In Carlow, 5/10; Kilrush, 11/3; Bantry, 7/8, and in the Waterford area, 10/6. In one area they are less than double pre-war; in another area they are a little over double, and in two areas, Clare and Waterford, they are more than three times. When you come to go into the explanation it is perfectly clear. These local bodies were used for what you might call war or political purposes. I am not challenging that. That is past history. But they were used for that purpose. Influence was brought to bear to return people for that special purpose, and I think it is generally admitted that people who would not have been returned otherwise were returned. Then the incidences of war naturally fell very differently on the various districts. In Clare and Waterford especially the combination of these circumstances produced great extravagance in Local Government.

There has been these abnormal conditions. The point I wish to make is that it is not fair that the entire increase of costs due to these abnormal conditions should be borne by the local rates. If there was this disparity pre-war, and you could say that Clare was always badly administered, or that Waterford was always badly administered, there would be some justification for placing the increased cost now on the rates. But that is not the fact. The figures show that the administration, so far as it was reflected by the rates, was fairly even before the war, and I claim, and I think it is common knowledge, that this increase of rates is largely due to conditions over which the local authorities had no control. For that reason these increased costs should not be borne by the local authorities. There is a very acute sense of grievance throughout the country, more especially amongst the farming community, at the burden of these rates.

In Clare, as the Minister, I think, knows there has been a very heavy arrear list, and a feeling amongst the farmers that there is great injustice in enforcing this rate owing to that fact. That is further reinforced by the Inquiry. The Minister has very generously granted an Inquiry into the case of these two counties. What does the Inquiry in the case of Clare reveal? I have not been able to get this from the Official Report, or even from the Press reports, but I have got it on good authority that one witness said the rates were used to defend a prisoner who was being tried by the British authorities, and that they also used these rates as a deposit for persons standing for the Dáil. In face of these facts which the Inquiry brought out, surely it is unfair that all counties should be treated alike, and that there should be no discrimination made in the case of those counties where the rates have been especially high owing to special circumstances. That is the point I wish the Minister to deal with, whether the Government will not take each county into account, and while enforcing the arrears, where a good case is shown give relief from the Central Fund to these counties. I know it is said that the Budget must balance, or that we can do nothing. Surely that is not a sound generality. The Budget, we know, must balance, but there are certain charges in the Budget which might be reduced and the saving on these charges might go to more important charges, such as I have indicated.

There is one other matter. In County Waterford, and I believe elsewhere, there is a very large number of unexecuted decrees in the hands of the sheriffs. I know that in Waterford especially there are complaints from shopkeepers and others who have got these decrees that the sheriff's officers will not go out. It is very unfair that if a defaulter holds these unexecuted judgements he should be proceeded against with all the rigour asked for in the Bill. I am going to put down an amendment which I hope the Government will consider—the legal phraseology does not matter at the moment— that where a defaulter holds an unexecuted decree the value of that decree should be taken into account, and he shall not be proceeded against until the decree is enforced. There is a feeling of great discontent at the failure of the sheriffs or their officers—whatever the reasons may be—to enforce the decrees of the courts.

I do not rise to oppose this Bill, because I am of opinion that those who have not paid rates will, in the near future, as a result of the Bill, have to do so. Of course, this country has gone through a terrible time and as a result local bodies have been affected directly and indirectly. The matter that I wish to allude to refers to Section 4 of the Bill. Section 4 says:—

"Where it shall appear to a District Justice, on the application of a local authority, that any person entered in a rate-book as the occupier of any tenement and rated as such occupier in respect of a rate made by that local authority was not the occupier of such tenement when the said rate was made, it shall be lawful for the District Justice to amend the said rate-book by striking out the name or description of the person entered therein."

The Section goes on to say that the District Justice has got to insert the name of the occupier. My house has been burned, but a rate has been struck by the proper authorities on that house. That house is not occupied by me. It is occupied by crows, jackdaws, and owls. The local bodies state that they have reduced the rate, but I cannot understand why a rate is struck on a house that has been burned and that is unoccupied. I want to know from the Minister if, under any Section in the Bill, I am in a position to secure that I shall be treated with justice and equity.

May I emphasise what Senator the Earl of Mayo has stated. I know a case, in which I am interested myself, where a house was destroyed—burned to the ground— over two years ago. Shortly after its destruction I called the attention of the local authorities to the fact that the house was no longer in existence, and that it should be removed from the rate book. It is only within the last few weeks that I have had a reply from the collector stating that he had reported the matter to the Commissioners of Valuation, but that they had not as yet struck it out and that, therefore, rates had to be levied on it. I am bound to pay them, but I think it is a great injustice. I hope I will not appeal in vain to the Minister in asking him to provide that the District Justice shall have power to amend the rates in cases of that sort.

As regards what Senator Sir John Keane stated about the state of Clare I am deeply interested in that County and I live there very largely. I think I can amplify some of the statements he has made about County Clare. The fact of the matter is that a great many people like myself who have paid their rates—and the vast majority of the people have not paid their rates— find as a result that the County Council have acted on this principle: They have taken the arrears of rates due one year and added them to the next year and divided the total rate into two moieties.

I am aware that there are some cases of people who paid their entire rates for the whole year. The arrears that other people have not paid have been added to those of the second year, and those people who have paid are being asked to pay a second time. It is beyond my power to devise a remedy but I trust that the Minister will introduce some provision which will give relief to cases of that sort. It is an open secret that a great deal of money was collected by improper people and that many people who paid their rates to such persons who gave receipts are being asked to pay a second time. I believe the receipts have been stolen and the money has been mis-applied. A great deal will probably come to light at the Inquiry which is now being held in County Clare, and it will probably be found that much money was missing. If the Government will consider the question and see how the matter could be remedied I think it would be in the interests of justice and a very desirable thing.

I have no great interest in defending the people of Clare whose conduct undoubtedly has been very bad, but I am informed that some of the statements made here about them are not correct. I understand that Senator Sir John Keane made a statement that they used the rates to defend prisoners and to pay the deposit for candidates to the Dáil. I am informed on very reliable authority that that statement is incorrect and that the money used to defend prisoners in Clare was money received by the local Volunteers as a poundage on the collection of rates and that from the same source the money was obtained to lodge deposits for the candidates to the Dáil. It is only fair that the truth should be known and that the people of Clare should not be made blacker than they are.

I am anxious that the truth should be known, and I made the statement subject to verification. What I said, or, rather, what I intended to say was that evidence was tendered at the inquiry in the sense of my statement, but I did not say that the evidence was necessarily proof.

With reference to what Senator the Earl of Mayo has mentioned as to the liability for rates for houses in ruins, so far as my recollection goes, when the rate collectors books under the existing law were examined by a Committee of the Co. Council, it was the rate collector's duty to point out a house unoccupied or in ruins and upon which the rates are uncollectable. I do not know whether this Bill proposes to alter that provision. Whether that was the law or not I am unable to say, but at any rate it was the practice.

I suppose I had better deal first with the questions put to me. Senator the Earl of Mayo has complained about being liable for rates for a house that has been burned. I would like to say that I have been in the same position myself with regard to a house near where the Earl of Mayo resides at Naas. I was charged with the rates for that house, and I wrote to the rate collector and pointed out the unfairness of the matter. He immediately took it into consideration and I was allowed a rebate.

Was that in County Kildare?

Between Naas and Newbridge. I believe the rate collector will take it into consideration in the case of the Senator also, and if not, if the Senator applies to my Department, I will guarantee that he will get satisfaction. With regard to County Clare, conditions there are anomalous. I suppose that County Clare suffered more than any other county in Ireland during the recent troublesome time, and I know that the farmers there are very hard hit, and in administering this Act we will take all these facts into consideration. I was not aware of the facts stated by Senator Sir John Keane that rates had been used for purposes other than those for which they were intended. An inquiry is at present being conducted in Clare, and if any irregularities are discovered we will surcharge the parties responsible. We have no other functions in the matter.

AN CATHAOIRLEACH

I think that covers the only two points made.

We have been asked to allow a grant out of the Central Fund to meet such special cases as County Clare, but that would be admitting the principle of consequential damage, which we have not, so far, admitted. We have given considerable relief to local rates by not charging them with damage to property, which is being paid out of the Central Fund. Perhaps it would be well to explain briefly what this Bill is intended to protect. There is no necessity for me to stress the present serious financial condition of local authorities. A great many of the county councils are working on heavy overdrafts. For example, Cork has an overdraft of £160,000; Leitrim, £67,000; and Tirconaill, £60,000. The financial situation is to a great extent the result of the large amount of arrears, which amount in all to about £2,500,000. If vital local services are not to be discontinued it is absolutely necessary that these arrears should be recovered without delay, and it is for this purpose that this Bill is being introduced—to speed up the collection of rates by extending the law, by extending the powers of Executive officers, and by providing additional or alternative machinery by making use of the Post Office for the collection of rates.

It also provides for the performance of other duties of rate collectors in cases where the Post Office has been substituted, and for the performance of certain duties by the Civic Guard. It makes other provisions which are more or less of a machinery character. As part of the general disturbance in the country a general reluctance has grown up on the part of the ratepayers to pay their rates. In some cases I am well aware that this is a case of necessity. The economic conditions have been such that ratepayers have been very hard hit, but I am also convinced that in many cases those ratepayers have the way, if they only have the will, to pay. It is necessary to resort to drastic measures to deal with them to make them pay. The rate collector has the following remedies for enforcing the collection of rates. First of all, he can distrain and sell goods under his warrant. He can proceed in the Court of Summary Jurisdiction, and thirdly, he can proceed in a Civil Bill Court. The first is encumbered by restrictive statutory provisions and has been practically in abeyance for the last few years owing to the danger of distraining without military protection and the reluctance of ratepayers to look for such protection. Also, there have been appointed a great number of young and inexperienced rate collectors during the last few years.

When a warrant to distrain is issued by a District Justice it is practically impossible to have it executed. The Civic Guard cannot act, and it is impossible to get anyone to act as a special bailiff owing to the low statutory fee. The procedure in a civil bill court is too costly. So we have been thrown back on the sheriff. The District Justice cannot issue a warrant of this kind to an under-sheriff for execution without his consent. Even if he could, their powers are not adequate to deal with arrears in the drastic way the situation requires. This Bill, then, accordingly gives power to the Minister for Local Government only for a period of twelve months to issue warrants to under-sheriffs to levy by seizure and sell all goods for rates due up to the 31st March, 1924. The Bill includes the provisions of Section 7 of the Finance Act, 1923, and extends those provisions to include all goods found on rateable property. These provisions will not be enforced except in those districts where notice has been given. The Bill also secures to those rate collectors who have lodged the full amount of their warrant the same expeditious remedy of recovering rates as they had before. As the law stands, such rate collectors are often put to great trouble and expense in recovering those amounts, as they are compelled to sue in a county or higher court. This power is also given to people who have ceased to be rate collectors, but to whom arrears of rates are due, with the exception that they are not given the power of distress.

The Bill also gives power of jurisdiction to a tribunal other than the local authority, namely, to the District Justice to amend the rate-book at the request of the local authorities. But it restricts his power to insert the name of the individual who should have been rated. It also gives power to serve certain notices through the post which had formerly to be served by hand. This is necessary, particularly in those counties where the post office is being substituted for rate collectors. With regard to substituting the post office for rate collectors, this is frankly experimental, and the provision has been inserted at the request of several local authorities. For the time being we are only going to experiment with it in those counties where the ordinary system of rate collection has broken down. It is admittedly a drastic measure, but I believe the circumstances of the case justify us in resorting to a drastic measure in this case.

I would like to say a word or two on what the Minister said about surcharging. I think Sir John Keane stated the matter very fairly and reasonably. Some of those acts complained of were done in the interests of the country at large. We all know that in the past money was necessary to the national cause. I should like to ask the Minister, without having any regard to those things which are wrong, such as private robberies, to have some regard for things that were done in the national interest at a time when it was necessary to do them. It is rather hard for an individual who did a straightforward national act to be surcharged for it. I think some difference ought to be made in those matters.

Question put and agreed to.
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