I move:
That Seanad Éireann condemns the Government for its failure to adequately consult all interested parties on its plans for the restructuring and financing of Local Government.
I welcome the Minister of State, Deputy Molloy, to the House. He has a wealth of experience in local government having served on Galway County Council and Galway Corporation where he was a colleague of mine. I want to extend my thanks to the Leader for the extra time he is allowing for the Private Members' debate on this issue. Hopefully, as many speakers as possible will have an opportunity to air their views on a subject close to their hearts. That is important as a majority of the Members of this House are elected by, and representative of, local authorities. An indication of the importance of the Private Members' debate can be seen in the number of Senators who have indicated their desire to speak on the issue. I doubt whether, in spite of the Leader's generosity, everyone will have an opportunity to make a contribution in the time allocated.
The call for the Private Members' debate and the proposal of the motion that Seanad Éireann condemn the Government for its failure to adequately consult all interested parties on its plans for the restructuring and financing of local authorities are not undertaken lightly nor with the intention of simply attacking the Government, something which is a prerogative of Opposition. I have moved this motion because I, and many of my colleagues, feel there has been inadequate consultation in regard to the proposed funding for local government.
The current proposals to finance local authorities through motor taxation are much more onerous on motorists than the system advocated by the previous Government which decided, in the summer of 1996, to provide for a maximum increase of 6 per cent on motor taxation over a three year period. The current Administration, however, proposes a mandatory increase of 6 per cent over a period of less than 21 months. This places an unfair burden on motorists and penalises people who cannot avail of public transport and must use their private cars, something which is particularly true of rural areas.
The position in regard to motor taxation is that any necessary future increase in funding will be ensured through increased sales in the car market. There is a touch of "live horse and eat grass" about these proposals in so far as there is no guarantee that Irish people will buy more cars in the future. Can the Minister guarantee that the Celtic tiger economy will continue into the future?
The number of cars per 1,000 of population in Ireland is 246 while the average in Europe is 428. In real terms then, car ownership in Ireland is only half the European average. In fact, we are second from the bottom in the European league of car ownership. This would appear to indicate that there will possibly be a rise in the number of cars sold in Ireland in the future.
Leaving the motor tax element aside we move to the more contentious issue which was the basis of the Fine Gael motion. Originally called the equalisation fund it is simply called the fund in the Bill. This contribution of £270 million will, unfortunately, not come into being until 1999. This means that local government will continue to be under-funded until then and may continue to be under-funded even subsequent to that date, in spite of index linking.
I welcome the provision that the base line will be amended to take account of any additional functions that local authorities may take on. However, I would like the Minister to explain to this side of the House the exact basis on which these provisions will be amended. Does he mean that local government will be taking on extra functions and will receive an increase in their contribution or does he mean that if a local authority sees an opportunity to provide better or new services or identifies a development necessary for the local infrastructure the base line provision will be amended to allow the local authority to carry out that particular project? In other words, if it was decided that a county such as Leitrim with a declining population was to be the location for a new city, would the local authority in Leitrim be allowed to request money from the fund which would leave other authorities denuded? I return to the nub of the argument. There has been a lack of consultation and we simply do not know what will be provided.
In 1996, during a debate on local government reform in Dublin Castle, as chairperson of the General Council of County Councils I proposed to the then Minister for the Environment, Deputy Howlin, the establishment of an independent commission to decide on the distribution of Exchequer contributions. This proposed group would contain representatives of managers, local authorities and a member from each of the major representative bodies such as the General Council of County Councils, LAMA and the AMAI. The proposal was greeted with horror by the Minister who immediately denied the need for such a commission. I said to him, and I say now, that local authority members should be represented. They have a wealth of experience and knowledge and a major contribution to make with regard to such funding. Many have expressed anger at their exclusion, feeling that it is a slight upon them, almost indicating that they are incapable of carrying out such duties.
I can think of no reason for the exclusion of councillors' representatives from whatever group or committee the Minister has established to decide on the distribution of the Exchequer fund particularly as local authority members are the people most affected in the distribution of funds. Can the Minister explain why councillors have been taken out of the loop? Will he consult with representative groups so that they can ensure that equity and fairness underpins any decision made with regard to the £125 million fund?
We are approaching the centenary of the establishment of local government in Ireland and it is right that we reflect on the contribution that local government, and local authority members, have made. These contributions have largely gone unrecognised and unrewarded. Local government has made an impressive contribution to the social and economic life of the state. The much vaunted Celtic tiger is presented as a triumph of social partnership and enterpreneurial spirit. There is truth in this but neither social partnership nor enterpreneurial spirit could have made any progress were it not for the foundations put in place by local authorities over many years. It is right that we remind ourselves of the variety and vastness of this contribution in areas such as the establishment of our universities, — a little recognised fact — the development of second level vocational education and unglamorous but essential work such as water and sewerage network provision and the building and maintenance of national and local roads. These are just some examples of how county and city councils have put in place the solid and concrete foundations which form the bedrock of our current economic success.
On a social level the provision of housing by local authorities both directly and through loans and other supports has contributed greatly to the social fabric of our urban and rural areas. I recognise that mistakes were made in the past although the concentration of house building in large numbers at a time met a real and pressing need. Local authorities have moved on from simply building houses and are also, in a real sense, building communities through the leadership of estate management schemes and similar social initiatives. I trust the Minister is reminded of such management schemes.
In a totally different area the cultural and artistic dimensions have been supported by local government through the provision of libraries and arts development services and through the establishment of such staff members as arts officers. From all of this we can see that local government has influenced vast areas of Irish life for the better as befits a sector which accounts for more than 10 per cent of public spending each year.
Local government, in a less tangible but very real way, has provided access to the democratic process for generations since before the foundation of the State. The General Council of County Councils, of which I am a member and which I have the honour of representing in the House through their nomination, will mark its centenary next year in parallel with the centenary of the foundation of the network of county and city councils under the Local Government Act, 1898. This centenary marks 100 years of democratic participation, education and the creation of a cultural service to public life which has served many people well in this House and in Dáil Éireann.
An area of concern for local authority members has been the growth of an array of partnership groups in the comparatively recent past. These groups work with little or no connection to the democratically elected statutory local bodies. While I accept that many of these groups are doing very good work and have shown an ability to be flexible in their response to the needs of their immediate areas, I am concerned that in the long term we are simply giving rise to a new network of organisations which will prove superfluous. The network or city and county councils which is already in place can carry out all of those functions.
The General Council of County Councils is the statutory representative body for Ireland's county and city councils. It has been participating in and monitoring the process of local government reform over the past two or three years. It has participated in influencing such bodies as the All Party Committee on the Constitution and the Devolution Commission and, through the Department of the Environment and Local Government, the general council has left no stone unturned in influencing the process to ensure that the status and role of local authorities and their members is enhanced to the greatest possible degree.
In spite of such representation and the influence which they have had in the reform of local government, local authority members are to be excluded from one of the most important aspects of local government — the distribution of funding.
The General Council of County Councils has been constructive and realistic regarding local government reform and has worked successfully to suggest to elected members that this kind of partnership is the way forward. There was an understandable and deep seated concern among members about this development but it was assuaged to a degree by the Government's intention, spelt out in the Better Local Government Report, that there would be a full linkage between the local development groups and the local authorites through a specialised SPC to be known as the community and enterprise groups.
The CEGs would link the main players in a given county in the area of local development with the local authority, cut down on overlap, improve co-operation, and make the best use of resources to deliver co-ordinated improvements to the enterprise climate of counties. The General Council of County Councils must register mounting alarm that this concept is not being carried through with the speed that was promised. The guidelines issued by the Minister for the Environment and Local Government last November did not carry a single mention of CEG groups.
These are some of the important, though far from all issues which councillors and representative bodies have raised with me. Our main concerns are who will decide on how money will be distributed and why local authority members were excluded from the body or committee which will be make such decisions.