Much like Senator Boyhan, I am on both sides, but I have chosen to stay on the left. I make this presentation today on behalf of Deputy Bacik, leader of the Labour Party, who, unfortunately, cannot be with us today.
It has been 125 years since the first local elections were held in Ireland, and there is a case to be made that now, more than ever in those 125 years, we need a fundamental reform of local government. We need to rebalance public administration in favour of communities and local decision-making. We often hear the frustration of city and county councillors about their limited powers. Indeed, many of us have experienced those frustrations. Our system of local government is one of the most centralised in Europe. We are consistently at or near the bottom of the European local authority index. That centralisation has continued under the current Government over the past eight years, with even more restrictions placed on the role of councils and councillors. I am thinking, for example, about the ever-reducing role in planning and development and the use of ministerial planning guidelines and rigid national and regional planning frameworks. The Planning and Development Bill progressing through the Oireachtas will weaken the role of councillors further.
Various efforts have been made at local government reform over the years but devolution has never really been a priority in those efforts, and we remain overly centralised in contrast to other European states. Local government plays a far more devolved role in many of our neighbours' local government systems, in areas such as education, public transport and healthcare. The recent Council of Europe report on Irish local government is illuminating. It notes that the extent of ministerial supervision is not proportional to the interests it is intended to protect. Supervision is generally extensive and detailed. This neatly summarises the micromanagement by the Custom House and the lack of discretion. In areas where local councils have been able to take a more active role, however, they have worked well, such as in local economic development, social inclusion and local policing through joint policing committees, although the role of councillors in that area, too, is now being diluted. We should also acknowledge the considerable role taken by local authorities during the pandemic in supporting small businesses and through the community call initiative, setting up local community response forums and helplines as well as working with the voluntary sector and mobilising local responses.
I am conscious the topic we are discussing is the future of local democracy and that much of what I have spoken about concerns what has been got wrong in the past. I will come to the Labour Party’s vision for the future of our local government system, but I acknowledge we as a party have not always got it right ourselves. My party colleague Deputy Howlin made a point in his contribution to a previous session that is worth reiterating. We were part of a Government that abolished town councils, our most local system of governance, in 2014. That was a mistake and it did not take us long to recognise that. We tried to rectify the issue through the introduction of the restoration of town councils Bill in 2018 but it has been languishing on Committee Stage in the Dáil ever since. I ask, as other colleagues have mentioned, that any future Government strongly consider this Bill on the restoration of town councils.
As for what local government should look like, it is clear from my previous remarks that we in the Labour Party believe the issue of devolution will be the key. We need to address the significant imbalance of power between the Executive and elected councillors. There is a democratic deficit in decision-making, which can only be dealt with by doing so. It is time we looked seriously at what functions and powers can and should be devolved to local councillors. Control over local investment projects, in areas such as housing, climate adaptation and transport, should, in the Labour Party's view, be devolved to the local level. Local authorities should hold responsibility for delivery in those areas, but it would also reduce the level of bureaucracy that holds up investment projects, such as those in the areas mentioned.
In the area of housing, we need local councils to be given a much greater role and stronger powers. The housing issue is the greatest challenge facing our country. I do not believe it can be solved without significant input and involvement from local authorities. We should be providing councillors with stronger powers to initiate and deliver housing and urban renewal projects. More capacity in improving and delivering transport services should be given in tandem. Local councils are already doing some fantastic work with the limited powers they have in respect of housing, but councillors constantly tell me that they want to do more. We should be expanding their remit rather than constraining it, as is currently envisioned in the Planning and Development Bill.
There are other areas that would be best served by affording greater power and autonomy at a local level too. I mentioned climate. Labour has proposed designating local authorities as energy authorities and giving them increased responsibility for addressing energy poverty, retrofitting and district heating.
There is also community development. This should be a core function of local government, with increased responsibility given to councils to allocate budgets, co-ordinate activity and pursue new initiatives, working with the community and voluntary sector.
On budgets and local government funding more generally, the financial independence of local councils must be strengthened. We encourage councillors to be responsible and to retain what they can raise with any new discretionary revenue-raising powers. Local government is funded from several sources. Of its current income in 2022, 40% came from government grants and subsidies, goods and services accounted for 25%, commercial rates for 28% and the local residential property tax for 7%.
On directly elected mayors, the establishment of the office in Limerick is a positive step, despite our frustration in the Labour Party regarding the relatively limited transfer of powers it received from the chief executive. We would like to see even more powers given to the new mayor. Nonetheless, this is a step in the right direction.