Dáil Éireann Debate, Wednesday - 8 November 2023
66. Deputy Catherine Murphy asked the Minister for Housing, Local Government and Heritage if he has reviewed the most recent report from the Council of Europe on the state of local democracy; and if he will make a statement on the matter. [48959/23]
View answer67. Deputy Catherine Murphy asked the Minister for Housing, Local Government and Heritage if the principles contained in the European Charter of Local Self Government which came into force with respect to Ireland in 2002 played any part in the Baseline Funding Allocation Review announced in recent months; if so, if he will outline how it complies with Article 9; and if he will make a statement on the matter. [48960/23]
View answer68. Deputy Catherine Murphy asked the Minister for Housing, Local Government and Heritage the plans, if any, he has to address the local autonomy index (LAI) where Ireland recently recorded a score of 42 and has one of the lowest score rankings, just above Hungary, the Russian Federation and Moldova, when compared against 57 against all investigated countries (details supplied); and if he will make a statement on the matter. [48961/23]
View answerI propose to take Questions Nos. 66, 67 and 68 together.
I note the report of the Council of Europe’s Congress of Local and Regional Authorities (CLRAE), adopted on 25 October 2023, concerning the application of the European Charter of Local Self-Government in Ireland. The report follows a process of engagement by a delegation of the Congress’s monitoring committee with a broad range of stakeholders across Irish national and local government earlier this year. I welcome this process, which included meetings with my colleague, Deputy Kieran O'Donnell, Minister of State for Local Government and Planning and officials, as well as elected members and officials from local authorities across the country.
The report makes a number of findings in relation to the application of the Charter’s 30 articles and sub-articles in Ireland. I welcome the report’s positive acknowledgement of the significant reforms that local government in Ireland has undergone since the previous monitoring visit in 2013. Many of those reforms were, it recognises, “codified in the 2014 Local Government Reform Act which transformed the structure of local government, gave local councils additional responsibilities for local economic development and local community development, and established municipal districts and regional assemblies”.
I also note the concerns expressed by the report, including those regarding Ireland’s compliance with Article 3.1 of the Charter, which concerns the degree of local autonomy in parties to the Charter, as well as references to Ireland's ranking in the Local Autonomy Index.
The reform of local government in Ireland is an evolving process and the next significant reform in this process - the introduction of directly elected mayors, beginning in Limerick City and County Council – will address a number of the recommendations made by the report, including those in relation to Article 3.1. Specifically, the directly elected mayor reform will enhance democratic control over internal administrative structures and transfer additional functions to Limerick, in addition to introducing formal consultations between the mayor and central government and addressing the reported imbalance between the elected Council and the executive.
My Department is also working with local government stakeholders to strengthen elected Councils in their governance role in order to address reported concerns at national level. As an immediate response, a revised Corporate Governance Framework for Local Government, which will strengthen the governance and oversight systems in place in local government and the role of the elected members in overseeing that, is almost finalised.
In relation to the recent Local Property Tax (LPT) Baseline Review and its correlation with Article 9 of the European Charter, it is important to note that LPT is just one source of locally raised income available to local authorities; Commercial Rates and Goods and Services income are also available to be used for local priorities.
Earlier this year a working group was set up to review the LPT baselines and guide the allocation of this non-programme funding to local authorities. The work of the group has been concluded and its recommendations adopted; the result of which is an increase in the overall baseline funding in 2024 from €353m to €428.4m. The intention of the review was to recommend a set of key indicators to be used to allocate available funding to local authorities in a fair, equitable and transparent manner. The working group included both elected and executive representation from the local government sector, and included a public consultation process with local authorities and their elected members. Given that the Review considered the protection of financially weaker authorities and their equalisation requirements, and involved significant consultation with, and membership from, local authorities as part of this process, I am satisfied that it strengthens compliance with Article 9, in so far as it was relevant to the scope of the Review.
While every authority will see a minimum increase in baseline funding of €1.5m in 2024, some authorities will see a greater increase, where a requirement was determined by the review. Overall, in 2024, Local authorities are benefitting from nearly a 20% increase in Local Property Tax (LPT) funding for their own discretionary use since 2021. €149m will be provided in equalisation funding next year to support those authorities with a lower LPT yield, ensuring that they have the adequate financial resources available to provide services on a local level.
I will consider the findings and recommendations of the CLRAE report further and will consult with Government, as necessary.
