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Thursday, 7 Nov 2013

Written Answers Nos. 152-162

Local Government Reform

Questions (152)

Lucinda Creighton

Question:

152. Deputy Lucinda Creighton asked the Minister for the Environment, Community and Local Government if the Local Government Bill 2013 addresses all of the concerns raised by the Council of Europe in its criticism of Ireland’s local democracy; the specific changes that were made to the Local Government Bill 2013 arising from the criticism; and if he will make a statement on the matter. [47552/13]

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Written answers

The Action Programme for Effective Local Government, Putting People First, which was published in October 2012, sets out Government policy in terms of a comprehensive range of reforms in relation to local government structures, functions, funding, governance and operational matters.

A key objective of the local government reform programme is to address weaknesses in the existing system, including issues which were identified in the report on Local Democracy in Ireland adopted by the Council of Europe Congress of Local and Regional Authorities in October 2013, such as the need for wider devolution of functions to local government, greater subsidiarity at local level, greater financial discretion for local authorities and increased consultation with local authority members associations. These issues are being addressed in the reform programme, particularly in the context of the Local Government Bill 2013, which is currently at Second Stage in the Dáil.

It should be noted that the Congress report specifically welcomes the Action Programme, endorses particular measures in the Programme including the structural changes at sub-county level, and recommends that the Programme be implemented rapidly with a view to devolving more powers and financial autonomy to local government. As outlined in the debate on the Congress report, the Government remains fully committed to the Action Programme and will continue to work towards delivering a local government system that is modern, fit for purpose, and which will be the primary vehicle for governance and public service at local level.

Property Taxation Yield

Questions (153)

Lucinda Creighton

Question:

153. Deputy Lucinda Creighton asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No.175 of 24 October 2013, when he decided that it has been necessary to defer defining a certain proportion of the proceeds of the local property tax to be retained in each local authority until 2015 rather than 2014 as initially promised; if this decision was a collective Government decision; if he will confirm the proportion of the proceeds of the local property tax that will be retained in each local authority in 2014; and if he will make a statement on the matter. [47553/13]

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Written answers

The local government funding model will change considerably in 2014. Under the Finance (Local Property Tax) Act 2012, commencing in 2014, the Minister for Finance will pay into the Local Government Fund an amount equivalent to the Local Property Tax paid into the Central Fund during that year; this revenue will be allocated to local authorities from the Fund. In addition, the establishment of Irish Water and its financial relationship with the local government sector will have a considerable impact on local authority financing.

The Government has indicated an intention to move to 80% retention of all Local Property Tax receipts within the local authority area where the Tax is raised. The establishment of Irish Water presents local government with significant organisational and financial challenges in 2014 and, in this context, it has been necessary to defer defining a certain proportion of the proceeds of the Local Property Tax to be retained in each local authority until 2015. This approach allows maximum flexibility in allocating Local Property Tax in 2014 with the priority to support those local authorities with weaker funding bases.

This decision has been taken in the context of Budget 2014. The 2014 Local Government Fund General Purpose Grants will be announced in due course.

I expect the Local Property Tax to have multiple benefits, including a more sustainable and resilient system of funding for local authorities and therefore a sounder financial footing for the provision of essential local services; greater local scope for financial decision-making concerning service provision - in particular, the inclusion of the local variation mechanism will further increase the autonomy of local authorities; and a strengthening of democracy at local level with a more active relationship between local authorities and local electorates. A stronger democratic relationship and clearer lines of accountability can only have a beneficial impact on service provision from the perspective of the service user.

Irish Water Establishment

Questions (154)

Lucinda Creighton

Question:

154. Deputy Lucinda Creighton asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 175 of 24 October 2013, the changes that occurred relating to the establishment of Irish Water presenting local government with significant organisational and financial challenges that had not previously been envisaged; the date on which he became aware of these additional financial challenges and the additional costs associated with these challenges; the total estimated additional amount in euro that had not previously been accounted for, to deal with the financial challenges in Irish Water; and if he will make a statement on the matter. [47554/13]

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Written answers

The establishment of Irish Water and its financial relationship with the local government sector will have a considerable impact on local authority financing from 2014.

Work is also underway on the funding model for Irish Water’s operational costs, to ensure that Irish Water can fund the Service Level Agreements being put in place with local authorities for the delivery of water services in 2014.

In view of the organisational and financial impact on the local government system, it has been necessary to defer defining a certain proportion of the proceeds of the Local Property Tax to be retained in each local authority until 2015. This is principally a matter of change management, as opposed to the emergence of unanticipated costs. This approach allows maximum flexibility in allocating Local Property Tax in 2014 with the priority to support those local authorities with weaker funding bases.

The Exchequer proposes a direct equity investment of €240m towards the capital funding of Irish Water in 2014. This will support projects to be included in Irish Water’s Capital Investment Plan and will ensure that the entity is in a position to take on the water services investment programmes of the 34 water services authorities, including some 80 projects currently in progress. Irish Water will also finance some of its costs and the liabilities transferred from local authorities through borrowings in 2014.

Local Authority Housing Maintenance

Questions (155)

Simon Harris

Question:

155. Deputy Simon Harris asked the Minister for the Environment, Community and Local Government if there are guidelines or standards in place to ensure that all local authority houses are provided with heating and insulation to a sufficient standard; if such standards are specific to Ireland or correspond with specific European directives or regulations; and if he will make a statement on the matter. [47555/13]

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Written answers

The statutory minimum energy performance standards (including insulation requirements) for dwellings are addressed under Part L of the building Regulations and the accompanying Technical Guidance Document (TGD L Dwellings). These regulatory requirements have been reviewed and upgraded intensively in recent times. Amendments to the regulatory requirements generally apply to new dwellings and do not apply retrospectively to existing dwellings save in specific circumstances where an existing dwelling undergoes a material alteration or is subject to an extension.

Directive 2010/31/EU on the energy performance of buildings requires EU Member States, inter alia, to ensure that statutory energy performance standards are set at a cost optimal level and to plan and work towards defining and achieving nearly zero-energy standards for new and existing buildings by 2020. The Directive does not specify minimum heating and insulation standards along the lines suggested. Ireland has made significant progress in this regard as previously outlined in the reply to Question No. 187 of 18 April 2013 which dealt comprehensively with the matter.

My Department is committed to the improvement of the insulation and general energy efficiency of local authority houses and to that end has in recent years run several funding programmes, accompanied by comprehensive technical guidance, directed at improving the overall energy performance standards within the existing social housing stock. In this regard there are currently an estimated 25,000 older local authority dwellings with low levels of energy performance due mainly to heat loss through the fabric of the building.

The Government’s Infrastructure Stimulus Plan announced earlier this year includes a provision of €50 million for energy efficiency upgrade works for these 25,000 local authority homes.

My Department has notified allocations to local authorities totalling €10 million for spending this year on a suite of works to include roof, attic and wall insulation together with draught-proofing of windows and doors. Funding of €25 million in 2014 and €15 million in 2015 will enable appropriate insulation and energy efficiency measures to be undertaken on all 25,000 properties.

Local Authority Charges Application

Questions (156)

Michael Moynihan

Question:

156. Deputy Michael Moynihan asked the Minister for the Environment, Community and Local Government his views on whether it is fair and appropriate that not-for-profit child care facilities are subject to local authority rates; his plans to introduce legislation in the near future which would exempt not-for-profit child care centres from local authority rates liability; and if he will make a statement on the matter. [47561/13]

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Written answers

Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes, in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. With regard to the application of rates to childcare facilities, where childcare provision is within a community facility, operating in a non-profit capacity, commercial rates do not generally apply. The levying and collection of rates are matters for each individual local authority. The annual rate on valuation (ARV), which is applied to the valuation of each property, determined by the Valuation Office, to obtain the amount payable in rates, is decided by the elected members of each local authority in the annual budget and its determination is a reserved function.

However, it is a matter for the Commissioner of Valuation to decide whether or not a property is rateable and on what basis it is placed on the valuation list. The Valuation Office comes under the remit of my colleague, the Minister for Public Expenditure and Reform.

I recognise that these are difficult economic times for many businesses and I am continuing to keep all matters relating to rates under regular consideration in my Department.

Water and Sewerage Schemes Provision

Questions (157)

Denis Naughten

Question:

157. Deputy Denis Naughten asked the Minister for the Environment, Community and Local Government the position regarding the plan by Roscommon County Council to establish the west Roscommon regional water supply scheme, including the Castlerea regional water supply scheme; and if he will make a statement on the matter. [47564/13]

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Written answers

The West Roscommon Regional Water Supply Scheme is included as a Water Treatment Plant Upgrade Contract at Granlahan to start in my Department’s Water Services Investment Programme 2010 – 2013. Under the Annual Review of the Programme, carried out in 2011, my Department approved the inclusion in the programme of an Advance Networks Upgrade Contract – the Castlerea Urban and Regional Water Supply Improvement Works, at an estimated cost of €4.465 million.

The Supplementary Design Review Report for the scheme was approved by my Department in April 2013. I understand that Roscommon County Council is currently engaged in the process of selecting the preferred tenderer for the above-mentioned Advance Networks Upgrade Contract. The Council is also engaged in the process of procuring consultants to prepare Tender Documents for the Water Treatment Plant Upgrade Contract and the Castlerea element of the scheme.

Water and Sewerage Schemes Provision

Questions (158)

Denis Naughten

Question:

158. Deputy Denis Naughten asked the Minister for the Environment, Community and Local Government further to his announcement on Friday last in County Roscommon regarding the upgrade of the four regional water supply schemes, when the letter of approval was issued to Roscommon County Council; and if he will make a statement on the matter. [47607/13]

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Written answers

The Arigna, Boyle/Ardcarne, Roscommon Central and South Roscommon Regional Water Supply Schemes are included as Water Treatment Plant Upgrade contracts to start and a Network Contract at construction in my Department’s Water Services Investment Programme 2010 – 2013.

My Department’s letter, approving the commitment of the necessary capital funding of just over €12 million for the scheme to enable Roscommon County Council complete the contract formalities with the successful tenderer and to commence, as soon as possible, the works involved in the Design Build Operate Contract on the scheme, issued on 5 November, 2013. This approval of funding provides for the construction of five Treatment Plants and other ancillary works on the scheme. The progression of this contract to construction is now a matter for Roscommon County Council.

Leader Programmes Funding

Questions (159, 160)

Brendan Smith

Question:

159. Deputy Brendan Smith asked the Minister for the Environment, Community and Local Government if he will provide additional funding to the Cavan-Monaghan Leader group as they have a number of important projects awaiting approval and these projects, if undertaken, will have substantial economic impact across the Cavan-Monaghan region; and if he will make a statement on the matter. [47609/13]

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Brendan Smith

Question:

160. Deputy Brendan Smith asked the Minister for the Environment, Community and Local Government if he will provide additional funding with immediate effect to the Cavan-Monaghan Leader group as the reduction in funding of €2.1 million last May is having a very negative effect on a number of projects with good employment potential; and if he will make a statement on the matter. [47610/13]

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Written answers

I propose to take Questions Nos. 159 and 160 together.

Cavan/Monaghan LEADER is contracted on behalf of my Department in relation to the LEADER elements of the Rural Development Programme 2007-2013.

In regard to LEADER, during 2011, the European Commission approved a change in the maximum co-funding rate from 55% to 85% for the LEADER elements of Ireland’s Rural Development Programme 2007 – 2013. This had the effect of reducing the available funding under the Programme from €427 million to an estimated €370 million.

It was therefore necessary to carry out a comprehensive review of the level of commitments and expenditure across the Programme in order to apportion the remaining funds among the Local Development Companies (LDCs), taking into account the level of commitments already entered into.

The redistribution of funding was conducted in as fair and equitable a manner as was possible and in the case of Cavan/Monaghan LEADER the revised allocation represents a decrease of 17.5% from their original allocation. Many of the other LDCs experienced similar reductions.

I am committed to the continued monitoring of this situation and my Department will review all commitments and expenditure levels later this month to ensure, in so far as is possible, that all available Programme funding is committed by end December 2013; allocations will again be revised if there is funding available for re-distribution.

Property Taxation Administration

Questions (161)

Michael Healy-Rae

Question:

161. Deputy Michael Healy-Rae asked the Minister for the Environment, Community and Local Government his views on correspondence (details supplied) regarding the local property tax; and if he will make a statement on the matter. [47624/13]

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Written answers

Local Property Tax and its administration are matters for my colleague, the Minister for Finance.

Local Government Reform

Questions (162)

Michael Healy-Rae

Question:

162. Deputy Michael Healy-Rae asked the Minister for the Environment, Community and Local Government further to the Government decision to shut down town councils and centralise local government within county council structures, the way the Government proposes to implement the decision; his plans for the buildings currently housing the local council offices; what will happen to all the workers employed within them; the measures being put in place for local authorities to take over this work; the amount of money that has been spent to date on preparatory works for this move, for example in County Kerry; the amount of money that has been given to Kerry County Council to help it take over the working of Killarney, Listowel and Tralee Town Councils; and if he will make a statement on the matter. [47626/13]

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Written answers

The Government’s Action Programme for Effective Local Government sets out Government policy in relation to a range of local government reform measures, including the establishment of a new comprehensive model of municipal governance to strengthen local government within counties and address weaknesses and anomalies in the current system. 

The Local Government Bill 2013, published on 17 October 2013 and currently at Second Stage in the Dáil, provides the legislative basis for many of the reforms set out in the Action Programme.

The Bill, as drafted, provides for the replacement of town councils by municipal districts, which, unlike the existing town councils, will be representative of all communities – urban and rural. The new governance arrangements will ensure that county council decision-making is brought closer to the local communities, without duplicate administrative or organisational overheads. In addition, as elected members will be elected for the municipal district in the first instance, this new structure will effectively eliminate duplicate representation.

Implementation of the reorganisation process is primarily a matter for each local authority. Advisory arrangements, involving a broad range of local government stakeholders, were established in December 2012 following the launch of the Action Programme with a view to informing, supporting and guiding the process of reform in local government structures and functions. As part of this process, a guidance framework has been provided to assist local authorities in the implementation of the reform programme in a timely and consistent manner. However, specific decisions on organisational issues, including the utilisation of their assets e.g. civic offices and the deployment of staff, arising from the implementation of the reforms remain a matter for individual local authorities having regard to local circumstances.

The Local Government Bill 2013 provides for the seamless transfer of functions from the local authorities that are to be dissolved to their successors, and as such the full range of local authority functions and services will continue to be delivered across each local authority area following the enactment of the legislation.

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