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Dáil Éireann díospóireacht -
Wednesday, 1 Jun 1983

Vol. 343 No. 2

Local Government (Financial Provisions) (No. 2) Bill, 1983. Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time".

Before the adjournment, I pointed out that this Bill is welcome as it restores local discretion, not only for local authorities to decide on spending priorities but also in deciding once again the rating for commercial property and this new area of charges. However, I questioned two points, the first was that the block grant which is being provided in the Bill has no matching element, in other words there is no local tax effort that would be rewarded by greater State subvention. I also regretted the fact that democratic local control is being frustrated by making the charges an executive function. I suggest it should be made an executive function for this and perhaps for next year but the Minister should explicitly provide that the responsibility for deciding on these charges will become a reserved function in two years' time by Ministerial order and I also strongly urge the Minister to make explicit on the county managers an obligation to come before the council each year and have a discussion on the level of charges to be made. Those two provisions would be worthwhile and I should like them explicitly mentioned in the Bill.

I am worried about the form these charges will take, that the manager has control over the charges and that they are to be decided upon residually, depending on resources available from central Government, that this will encourage a very facile revenue-raising approach to making up the shortfall over growth outlays and that this attitude to charges cannot but damage their potential economic value. If you asked an economist what he thinks of when a charge is mentioned, he would think in terms of supply and demand curves and the fact that the purchaser could decide what the aggregate payment he makes would be, depending and reflecting his usage. The other element is that the charge would reflect the supplier's costs in some way. The notion of a charge is quite different from a levy. A levy tends to be based on a fixed amount, a flat-rate charge which is easy to collect; it would tend to be indiscriminate as to whether the person avails of the service or to what extent he avails of the service. It would also tend to increase yearly without any reference to the costs. I am worried that some of the elements in the Bill point more towards the introduction by local authorities of levies in this form rather than true charges. For example, it is clear in the Bill that the councils will have the power to collect these charges, whether or not people avail of the service if the service is provided to the premises. If a refuse collection was being provided on the road, all would be liable to a charge, regardless of whether they were availing of it or not. There is a possibility of increases year by year, without reference to the specific conditions of the service being examined, because the requirement to raise charges on aggregate will be decided by central government. I see grounds for concern in this regard and, if it is the case that they are levies rather than charges, we are missing a great opportunity to use this Bill in a proper fashion to get value for State money.

I see two big dangers if we settle on a levy. It will be very difficult to impose yet another charge on hard pressed householders in the form of a levy which they cannot evade or influence. The other danger is that the potential of charges to be a management tool for efficiency will be lost. I should like to give a few examples of how I could see a big difference between levy type charges and true economic charges. For example, in the area of pollution emission, the simple accounting approach in trying to raise revenue is to levy a percentage of turnover, whereas an economic charge would be related to the level of emission that the company would be making. I am worried that the opportunity will not be taken for that more sensible approach to charging.

How does the Deputy think that local authorities would have the capacity to evaluate economic charges as distinct from levies?

We cannot have questions at this stage of the debate.

I am not sure exactly what he means by how they would evaluate them. Perhaps if I go through a few examples I have in mind it might partly answer the Minister's question.

I have been complaining for the past hour that Question Time was being turned into a debate, now the debate is turning into Question Time.

I am only trying to help the process of democracy.

In the case of roads, I fear that a simple, straightforward levy would look for fixed tolls whereas proper economic charging would depend on off-peak pricing. I do not see any difficulty in councils or local authorities evaluating off-peak pricing as against flat rates. In the case of refuse, the levy approach would go for a fixed poundage flat rate per house and some councils have already brought this in. An economic charge would go for quite the opposite, in a charge per refuse sack, and there would be an incentive to people to minimise the amount of wastage. Possibly, it would be sensible to subsidise people who are willing to segregate their rubbish and make it available for waste recovery. I am afraid that an opportunity will be missed to use charges flexibly in that area.

In the area of development and planning, the tendency has been to go for flat-rate charges to recover some of the infrastructural costs to councils and local authorities, whereas economic charges would clearly go for discrimination to achieve the objectives of the development plan. For example, there would be lower charges for clustering of houses, if that was an objective of the development plan, there would be higher charges in the event of high rise if they wanted to avoid high rise buildings. I should like to see this sort of flexibility brought in and I am afraid that, under the present system, it will not be there. I suggest to the Minister and the Minister of State that some advice should be made available from his Department or from other informed sources as to how the charges can be used in a fashion which will promote efficency in services. A proper price structure can be valuable and most local authorities would need some assistance and advice on that.

Another suggestion is that each service for which a charge is levied be established into a separate management unit of some sort with, year by year, an explicit debate within the council on the affairs of that unit. The merit of that would be that it would allow the changes in charges to be set in a context of how costs were moving for that service and that there would not be excessive charging or cross-subsidising, with money being taken out of one service and put into another, which is not the purpose of charges.

It would also allow councillors and public representatives to discuss how much of the fund from charges had gone into incremental improvements of the service. People could be persuaded of the value of these charges where improvements were being made. Another matter which could be considered for annual discussion would be what complaints procedure was in force and whether a market-like service was being provided. An efficient service must be provided, without the delays which have been a feature of some areas of local authority service at a time when they were inundated with work, partly because there was no charge to be paid. Those delays must be ironed out if we are to have charges acceptable to the public at large. For example, in the planning permission area I could not see people being willing to wait for long periods or to have questions put at the last minute which they would regard as purely a stalling mechanism if they were going to be charged for that service. I would advocate scope for annual public discussion of the charge and the changes in it and the service to which it is being put.

I ask the Minister to consider not excluding subsidies for efficient styles of usage from the scope of this Bill. It is, after all, a Bill dealing with pricing and, philosophically at least, there is no difference between subsidising people to do something the correct way and charging them for doing it the wrong way. I instance the case of refuse collection. There is an argument in some areas for subsidies to go towards certain users. I would not like it to be ruled out because the Bill dealt solely with charges.

I now turn to another element of this Bill, which is the whole question of the block grant involved in State support of local authorities. Under the Act the Minister will be paying a block grant to local authorities which is based on the rate product of both domestic and agricultural properties in the local authority area. I understand that it is intended that the same percentage of that rate product will be paid to each local authority. There is absolutely no reason to believe that this is a fair way to distribute State money available for local authorities with the best results. The rate product of domestic and agricultural properties will not necessarily produce the proper distribution of these funds in line with regional policy. There is a prima facie case to suggest that it would be quite a long way from being a fair system of sharing out revenue. For example, it is well known that there are enormous variations in the agricultural income generated per £ of agricultural valuation. That was at the back of the High Court case which was brought and is now, I understand, under appeal. The lesson I would draw from that is that the rate product also implies big differences in the ratio to the rate product and the agricultural income.

I have taken the trouble to look at some relevant data and there is an enormous difference in the percentage of income arising which is constituted by the rate product. The year in question is somewhat out of date, being in the seventies, but the range will be indicative. It ranges from 9 per cent of income arising in Kerry, 11 per cent in Kildare and 12 per cent in Cork, up to — at the other end of the scale — 28 per cent in West-meath, 24 per cent in Longford and 20 per cent in Roscommon and Leitrim. If we give a State subsidy on the basis of those figures we will be favouring the high percentage counties such as Westmeath and Longford and disfavouring the low percentage ones such as Kerry and Kildare. Favouritism of that sort is not in line with regional policy.

The same is probably true of the domestic rate, although I have not been able to get a look at that data. Probably the domestic rate arbitrarily favours certain counties which would not be chosen if we decided to allocate moneys available on the basis of some more rational scheme of revenue sharing — for example, one that would have an eye to population, to income per head, to local tax effort and to local needs. Indeed, it would not be difficult to see the sort of structure in our present subsidy. All one need do is look at the rate product for domestic and agricultural rates and compare that with the total county income. I looked very roughly at some figures and can identify quite severe discrepancies. With the pattern I indicated, some of the southern counties would seem to be doing badly compared with some of the others. I would be concerned about that if it were to become a permanent feature of support of local authorities. In this Bill we are not really discussing the regional policy element of rate grants, but I strongly urge the Minister to bring to the House some scheme which would allocate revenue on a more rational basis.

In conclusion, I ask the Minister to consider a number of amendments, one being the reversion of the function of making charges to the county councillors after a couple of years, when the system is well and truly established and seems to be operating well. Secondly, I would like the Bill to explicitly require county managers to consult with the councillors on the making of these charges at a public meeting. This should be done annually for each service, so that there would be a proper discussion. Thirdly, I would like the possibility of subsidies as well as charges being involved in this Bill. Finally, I suggest that if the Minister uses the power in this Bill to waive certain charges, he should at least offer some form of compensation to the local authority involved. The Minister has the power to decide, in the national interest presumably, that certain charges should not be made and if he so decides he should ask the national Exchequer to compensate the local authority.

I should like to make it clear that the abolition of rates on private dwellings was originally fully justified. One would gather from the Minister's speech that this was not necessary. He said that it became commonplace to hear councils criticised for being a drain on the resources of the State. I do not accept that. If rates were in existence today a householder with a valuation of £20 in Kerry would pay approximately £450 in rates. The vast majority of householders could not afford to pay that much today.

Unless the council as a body agree with the charges it will be very difficult to collect them. Central guidelines should be laid down by the Minister and the Department. It is not right that there should be varying charges in different local authority areas. Councils should work within those guidelines.

The services for which charges will be made and the level of the charges will be at the discretion of the local authority. We must bear in mind that when managers present the elected members of local authorities with the book of estimates the die is cast. At that time the expenditure is decided on by the manager and his staff. The council are presented with a fait accompli. The onus is on the councillors to say where there should be a cut-back in the estimates and if charges and levies are to be reduced. This could give rise to the implementation of section fours directing county managers to provide for an estimate of expenses not exceeding a certain sum in any year. This would be undesirable. I should like to see a system where managers, staff and councillors would work together and decide on the level of levies and charges which would be appropriate to the capacity of the people to pay.

I am very concerned about the proposal to charge for refuse collection particularly in rural areas. In my county we are very proud of our environment.

That is not evident from the number of section fours.

The environment in Kerry is fundamental to the economy of the county and to the livelihood of the people. The fixing of charges for domestic refuse collection could lead to dumping or the over-filling of bins in central locations by people who could not afford to pay the charge. Perhaps the councils could be asked to investigate the possibility of having pick-up points in certain rural areas rather than stopping at every gate. It is impossible to have an extension of the domestic refuse collection in any area due to financial restrictions.

Does the Deputy not agree that the reason we are bringing in this legislation is to enable local councils to make these decisions at local level and not fix those standards in Dublin?

The reason the legislation has been brought in is to enable the councils to collect money. The Bill provides for the introduction of rates by the back door. It is quite obvious that levies and charges fixed this year will be increased as the years go by. There is no point in saying these matters will be reviewed two or three years hence and that perhaps the levies will be reduced. I do not know of any tax or charges which were imposed and later reduced.

What about the wealth tax?

What is the position regarding the collection of charges from hawkers in towns and villages on fair and market days? The Minister said that the range of services was confined to those provided on an individual basis and that the charges would be collected mainly in respect of premises and not people. Hawkers in towns and villages often leave a trail of refuse behind them. How will the money be collected from them? As regards people who operate off-sale food shops what arrangements have been made to collect the charge from them?

Have your local authority——

The Deputy is asking questions.

The Minister will have an opportunity to reply.

This Bill will give powers hitherto unknown to managers to implement charges and levies as they think fit without prior consultation with members of local authorities. The functions assigned to managers under the Bill should be assigned to the elected members of the councils. The elected members of local authorities would be more than delighted to handle these charges. I am aware that there is provision for hardship cases in relation to the collection of the charges and levies but there are none who know the local scene better in terms of hardship cases than the local councillors. If the Minister is not in a position to amend the Bill so as to transfer these functions from the executive function of the managers to the reserved function of the councils, he should at least make arrangements for consultations on a regular basis between the members of the local authority and the management and staff side on the matter of deciding who is to pay these charges. In addition, there should be a scale of charges based on how much each individual can pay. The proposed charges will impose serious hardship in some cases.

Regarding the charges for planning permissions I can see very good reason in this in terms of major developments where it is necessary for a local authority to seek consultant advice and so on. But it is somewhat unfair that this charge should apply to persons seeking planning permission for individual dwelling houses or for outoffices or farm buildings.

I am not happy with this Bill for the reasons I have stated. It is a Bill that the Minister should give serious consideration to amending on Committee Stage.

Deputy O'Leary is a man for whom I have considerable regard and one whose judgment I would have been inclined to trust in the past but having listened to him today, all I can say is that I am satisfied now that virtually every member of Fianna Fáil is on the way back from The Way Forward. After a lot of effort in trying to persuade Fianna Fáil that expenditure had to be provided for by revenue in some way or other, I am surprised to hear Deputy O'Leary's comments about the Bill.

I find provisions in the Bill that are unattractive and I am sure that goes for everyone else but these services must be paid for in some way or other. If Deputy O'Leary would refer to The Way Forward and to the Estimates which his Government came up with last year and if he would admit the shortfall they were allowing for for local authorities this year and if he would at least recognise that these services must be paid for, he would be more acceptable in speaking to this debate. We might have had more regard for him if he had told us constructively where we were to find this money. If he is suggesting that we should raise the money from central funds, since we know that there is no provision in the budget for this, he might have suggested, for instance, that we increase VAT rates or excise duties.

Deputy O'Leary tells us there should be no charge for these local authority services but he has not put forward any suggestion as to where the alternative finance might be found. He is acting like a mealy-mouthed county councillor who is afraid to make any proposal on the revenue side but who has lots of ideas on the expenditure side. If Fianna Fáil are running away to that extent from The Way Forward I sincerely hope that the people will see them for what they are and that after all their wild profligacy of 1977 to 1981, their conversion to responsibility in dealing with national finances seems to be shortlived. One got the impression from Fianna Fáil spokesmen in the last few months that they were being responsible in their utterances about expenditure, whether local government or national expenditure, but I am disappointed at this recent change of trend, examples of which we have had from Deputy O'Kennedy on the Finance Bill. Their irresponsibility in this general area of expenditure is regrettable.

While I do not welcome this measure I recognise the necessity for it. I appreciate that it is expedient at this time and that having regard to the amount of time the Minister has had in office and to the Estimates for expenditure this year, he has had very little option but to introduce a measure of this kind. This way of raising finance is not acceptable or at least it is acceptable only as an expedient for this year and perhaps the following year, but it is not acceptable in the longer term. Charges such as those proposed are inflexible, whereas the old rates system whereby those with the bigger houses paid most was much fairer.

In addition, the administrative costs involved in collecting relatively small sums of money make the operation nonsensical and is a bad idea in the short term. Another point is that most people are beleaguered with tax, with PRSI increases, the youth employment levy and so on. They will look on this new charge as an additional tax and will not relate it closely enough to the logic of services. There are some services such as refuse collection in respect of which it is unreal to say that charges can be collected. That will not work.

The Bill is acceptable to me only as a short-term measure, a measure for the next year or two until such time as we have our basic system of financing local authorities on a sound and sensible basis. We can then proceed from there.

I regret that the Minister of State has just left because on a couple of occasions I have had the opportunity of discussing with him his ideas for the reform of local authorities and particularly for the reform of local authority financing. I am aware that the Minister for the Environment referred in his Estimate speech to his wish and his intention to bring about this reform. I welcome that general approach. Fortunately, there are in the Department a Minister and a Minister of State who are committed to such reform. This is something that is long overdue but it must be faced up to. It is nothing short of disgraceful that for the past ten years, since the rot of local authority financing started, when a Coalition Government in 1973 began to remove health charges from the rates, no alternative co-ordinated system has been worked out.

We started in 1973 and worked through progressively to 1978 in removing the health charges from the rates. In 1977 domestic rates were abolished and in 1981 there was a reduction in farmers' rates. In 1982 the High Court decided that the PLV system should be abolished as it applied to farmers but up to now we have not brought forward any alternative system of financing local authorities. We are now in the position where local authority financing consists of a mishmash of non-co-ordinated schemes.

In my short contribution, I hope to show that this situation has had a very serious effect so far as many areas of the country are concerned and that overall it has done a lot of damage to our system of local government. It is time we called a halt and came up with an alternative system.

Whatever we might have thought about the rates system, when we abolished rates we left intact the collection system. This would seem to be extraordinary. We have the same rates collection system in North Tipperary now as we had ten or 20 years ago. The proportion of the area's revenue that came from rates was about one-third. Today it is 4 per cent but we still have the rate collectors. It is estimated that in this year we will be spending more than £200,000 in order to collect a total of £430,000 in rates from just more than 1,000 ratepayers. That represents about 50p in every pound by way of expenses. This is not the fault of the rate collectors, of those people who have been employed in good faith down through the years and who have worked the system but it is the fault of successive Governments who have interfered with the system, who have failed to devise an alternative way of financing local authorities and have not come up with an alternative way of using rate collectors or letting them go and properly compensating them for going. Unfortunately, because of their status they cannot be made redundant in the ordinary way. There are steps which should have been taken which now need to be taken. It is scandalous that half the money collected in rates in my county is absorbed in collection. That situation is repeated in every county which has a significant farmer ratepayer content in their rates collection system. This should have been tackled before this. I asked the Minister for the Environment to take urgent steps to rid us of this inefficient system.

I want to move on to what I regard as the most serious aspect of local authority financing since 1978. In 1977 rates were struck throughout the country on a basis which related to the different counties' needs at the time. Very few local authorities, managers or councils could have anticipated that the decision they took that year would determine their local authorities' well-being for the years ahead. That is exactly what happened when rates on domestic dwellings were abolished after Fianna Fáil came to office in 1977. The Fianna Fáil Ministers and subsequent Ministers placed a limitation on the increase in rates by local authorities and also placed a limit on the annual increase in the rates compensation contribution to be made by central funds. I estimate that in the five years from 1978 to this year the increase has been of the order of 58 per cent whereas the increase in the consumer price index has been of the order of 90 per cent. Local authorities have had the differential there as a shortfall in the resources available to them.

This has not hit every local authority uniformly. I was very pleased to hear Deputy Richard Bruton make the point that some local authorities are being discriminated against because of the system since 1977. If local authorities were left to their own devices they would have the money to provide services since 1977. The fact is that because of interference by Government local authorities have been given an increase of 58 per cent in the revenue they need to provide their services notwithstanding the fact that the inflation factor in providing those services has increased in the order of 90 per cent.

I want to give an example of how this has affected one area. Obviously, I am more familiar with my own area but this must repeat itself through the country. It is estimated that in North Tipperary in 1983 the effective level of funds available for maintenance of all road categories — I am picking road categories because the maintenance of roads is something councils have to pay for, as is the case also with sanitary services — will be 34 per cent below the 1978 level. We are spending 34 per cent less on the maintenance of roads in North Tipperary than we did five years ago. It is extraordinary that we could tolerate this for such a long period. It is extremely dangerous to have allowed this to go on for that length of time. In North Tipperary we estimate we have over 1,700 miles of roads of all categories. We estimate that the capital value to us of those roads is well in excess of £120 million. It is probably now of the order of £150 million. If those roads are destroyed or damaged they will have to be replaced. They are being eroded. If the present means of maintaining them continues it will not be too long before the foundations of those roads are so destroyed that they will have to be replaced.

Roads represent the most valuable infrastructure available to North Tipperary. The same must be true of every county. It is the one area where Governments, particularly Fianna Fáil Governments, must take the blame — although, given our current economic difficulties, the present Government are tempted to do the same thing, and have done this year. It is an easy way out for politicians in difficulty or for public servants, who have to come up with proposals in difficult economic circumstances, to cut back on this, not provide money to local authorities and then the local authorities will not maintain the roads. We find ourselves in my county this year spending 34 per cent less on road maintenance in relative terms than we did five years ago. This is a recipe for disaster, as far as infrastructure is concerned, and it must stop.

I would like to give an example of how this manifests itself. For various types of roads there is a desirable dressing cycle. For national primary routes the desirable surface dressing cycle is every five years: every five years surface dressing should take place. I am sure our area is typical of every local authority. In my area the attainable cycle this year will be eight years. For national secondary roads the desirable surface dressing cycle is six years and the attainable cycle in 1983 is ten years. For regional main roads the desirable surface dressing cycle is seven years. In 1983 the attainable cycle, because of the economics of local authority government, will be 13 years. For county roads, which are very important, the desirable surface dressing cycle is nine years but the attainable cycle this year is 23 years. This means that instead of surface dressing our roads every nine years this can be done only every 23 years. That situation has been getting progressively worse over the last few years. It is clear that somebody must shout stop, that we must examine the whole area of local authority financing. That should not be done for the sake of country councillors meeting their constituents or for the sake of Dáil Deputies, who realise it is not so easy to get a turn taken off a road or to get lighting put somewhere. It is simply because we are eroding our assets and destroying the basic infrastructure of the country. We must put a stop to this without any further delay.

I want to refer to something Deputy Richard Bruton referred to briefly. The system of financing local authorities we have had since 1978 has been inherently discriminatory so far as some local authorities are concerned. Some local authorities in 1977 were enterprising and were prepared to risk the wrath of the public by striking high rates. This is true of Dublin Corporation at the time as well as some other local authorities. It is equally true that many councils throughout the country, because of conservatism among the councillors or council management, were slow to pile on any rates increase. The year 1977 has been taken as the base year on which all increases from then on have been determined. There were some areas which, prior to 1977, had a lot of development, perhaps major water schemes, major sewerage schemes. Because of the council's obligation to provide 50 per cent of the interest on capital borrowed from the Local Loans Fund, for which they had to make provision in their rates, they happened to have a particularly high rate at that time. Notwithstanding the fact that some of those loans could now be repaid, because that rate was high in 1977 their entitlements to an increase each year are determined on the basis of the 1977 rate. It is also the case, and certainly true of my end of the county, North Tipperary, that there were not that many schemes in existence, as the Leas-Cheann Comhairle well knows. It is also the case that since then North Tipperary County Council have undertaken one major scheme in Borrisoleigh and want to undertake major schemes in Thurles and Nenagh, regional water supply schemes to which I have referred. But the actual financing of those schemes, so far as the county council is concerned, can prove to be crippling. Because of the system of financing, because we are entitled to 10 per cent or 15 per cent on our 1977 rate, because no account is taken of development by way of regional water supply schemes, sewerage schemes or whatever, because we are not given any particular allowance for this, North Tipperary County Council will do worse than a county that had made plans for these prior to 1977.

I pose the question: what was so magic about 1977? What was so important about 1977 that every decision taken by local authorities in the years following — and six years have gone past in the meantime — has been based on the rate obtaining then? Why should 1977 have been so important? Are we not all aware that decisions taken, decisions planned in 1977, like the abolition of car tax, like all of the economic madnesses and niceties provided by Fianna Fáil planned in 1977, have now been reversed because all of us have seen how stupid and silly they were? Even Fianna Fáil — apropos The Way Forward— now admit that those policies were stupid and dangerous ones. Because the domestic rate was abolished in 1977 and an alternative system of financing was never devised, an accidental system arose that has remained there ever since. Why should that remain sacrosanct?

This system of financing local authorities by way of contributions from central funds, simply on the basis of the 1977 rate, must be abolished. It is discriminatory and damaging. It means simply that those areas that were developed in 1977 have become better developed since. It means also that those areas that were not developed, or that were under-developed, relative to their neighbouring counties, to Dublin Corporation or to other areas, have done particularly badly since then. It is against regional policy, it is offensive to people who live in areas that are, relatively speaking, disadvantaged or deprived and a stop must be put to it.

Implicit in all I have said is the call for a review of our system of local authority financing. I accept this Bill on the condition only that it is an expedient there for a year or two. I regard it as necessary because of the condition of the finances of local authorities at present. We must start now to review our system. I am aware from comments made already in the House by the Minister for the Environment and his Minister of State that they are interested in reform. I accept the sincerity of their remarks and know they will strive to bring about these reforms. I hope what I have said will highlight the urgent necessity of bringing about those reforms. It is not an easy job; it is one that will require a lot of effort. It is a debate to which local authorities and their members throughout the country should be invited to contribute.

I want to mention a couple of things which I think should be considered in the context of such a review. First of all, on the expenditure side, it is a nonsense that local authorities should have to provide finance for health boards, for the drainage schemes of the Office of Public Works, for vocational education committees and agricultural groups like ACOT. Local authorities should have to provide finance for the services they provide themselves and nothing else. Let us stop being silly and nonsensical about it. Let us stop finding tolerable and acceptable this mish mash we have, this maze of systems of financing one or other operation, one or other service.

Secondly, I would appeal to Ministers to stop imposing new obligations on local authorities for which finance is not going to be provided. I might mention one, namely, pollution control which went through since I came into the Oireachtas. It is great fun passing measures and discussing them in this House — for example, as to what we are going to do about pollution control — and then saying the local authorities will operate the system and go on to provide no funds whatever to local authorities for so doing. Another that occurs to me now is the operation of the malicious injuries code. It is stupid asking local authorities to administer things like that unless one is prepared to provide the finance for it. All it means is that local authorities will be rendered more inefficient in their operations if they are not allowed to continue to carry out their own work. It also means that a strain is put on their funds. It means too that there is no logic or sense to funding various bodies — if the funding is coming from the local authority — when there is no liaison between the local authority and the provision of the services I have mentioned. I make those points on the expenditure side.

On the revenue side we have a major decision to make. We must decide that either it is going to be a local tax or a central tax. I would favour a central tax. I say that because I believe that in a country of this size it makes more sense to collect money centrally rather than locally. The amount of money we would collect locally would involve us in collection costs not warranted by local authorities. If we want to run a rates system, or a system that draws funds purely from central funds, it should be done centrally. In the North of Ireland this year they have computerised their rates collection system; they have reduced their rates offices by, I think, half. They have a £1 million computer installed and they will now offer discounts to people who pay their rates promptly. That seems to me to be an eminently sensible approach to the problem and seems to be going in the opposite direction from us, albeit on a temporary basis, in this Bill here today.

I would urge that we have a centralised system. I am not particularly fussed whether the tax comes from property, from income, from charges for services or whatever. My inclination is to keep things as neat and tidy as possible. Apart from specific services like planning, for which a charge can and ought to be made, for general services such as sewage disposal, water supply, collection of refuse, whatever, there is nothing wrong with a central system of collection. Equally there is nothing wrong with the capital for sanitary services schemes coming from central funds provided it is recognised that different areas have different needs; provided it is recognised that an area, for example, which has not had the benefit of a regional water supply scheme, is going to need one that the allocation from central funds will be based on criteria that take factors like that into account.

If that is done we could devolve a fair system, one that would not militate against an area that has been undeveloped in the past. I have no great hangups about it. I am quite prepared to listen to suggestions. I only wish we could have a full debate on the subject. There are very many county managers and council officials with a great many ideas. I trust the reform referred to will be manifested in a very real sense and that some kind of paper will be published and invitations issued for suggestions and ideas. In a year or so — I do not go any further than that — I hope proposals will come before this House designed to change the whole system. As it is at present the system will not survive.

I support everything Deputy Molloy said this morning. We recognise and accept charges are necessary so that revenue will accrue to local authorities and enable them to meet the shortfall. Like other speakers, I totally disagree with the way in which what the Minister proposes is being done. Power is being taken from the elected representatives of local authorities and given into the hands of the county managers. I strenuously object to that.

When this matter came up for discussion in Dublin County Council there was total confusion. Members believed they were entitled to make decisions. That was the belief on the part of every member irrespective of political affiliation. It was very difficult to get from the acting county manager whether or not he was involved. Some members brought in motions to the effect that it might not be necessary to introduce charges if savings could be effected in other directions. It was at this stage that members realised that the power to make these charges lay with the county manager. It was, in other words, an executive function.

This morning the Minister stated:

The basic responsibility for deciding on the amount to be raised by charges will fall to be exercised by the council members in the context of their decisions on the estimates.

Council members believed they had the power of making charges. A circular sent out by the Minister — FIN 9/83, page 3, No. 10 under the heading of "Functions"— states.:

The charges' functions assigned to local authorities under the Bill will as executive functions fall to be performed by the manager. In practice, however, the amount of revenue to be raised by charges will be determined by the estimate adopted by the elected members.

That is totally contradictory to what the Minister said here this morning and I disagree with the manner in which this is being done. As I said, there was utter confusion about the whole situation and, when the Minister comes to reply, he has a duty to clarify the position. In one statement the powers are vested in the manager. In the statement here this morning the impression is given that powers lie with the members of the council.

The speech made by Deputy Avril Doyle was almost a copy of that made by Deputy Molloy. She appeared to endorse the bulk of what Deputy Molloy said. This represents a total erosion of the functions of members of local authorities. The powers of local authorities at the moment are based on democracy. Now it is proposed to remove those powers. What encouragement will there be to anyone to stand for local election? Councillors give valuable service and a great deal of time to the affairs of the council. If what the Minister proposes is passed what part can they play in the future? I trust the Minister will reconsider this.

The greatest problem lies in the difficulty experienced in getting the required information. Had this debate taken place prior to the confused discussions to which I referred the position would have been clear. What the Minister proposes is the re-introduction of rates in a slightly different form — I shall not say by the back door. It is stated that it is not possible to do away with rates entirely. It follows from that that something else must be in mind. I have the greatest respect for Dublin city and county managers but, if this power is vested in the manager, it will be open to him at any time to introduce a charge, a charge that should be the responsibility of the elected members. Such a charge might entail a certain degree of unpopularity but, if an elected member cannot face some degree of unpopularity, then he should not be a member of a local authority.

In the debate on the building industry last week I referred to planning charges. I am sorry the Minister for the Environment is not himself present at the moment because I should like him to know the point I am about to raise. We all know there are many community centres operated by local committees and I would ask that planning charges in regard to these centres be waived. I trust the Minister will deal with this when he comes to reply.

Deputy Molony referred to what Deputy John O'Leary had said. Deputy O'Leary was opposed to the system. He made no reference to the charges. Deputy Molony referred in detail to The Way Forward. I fully recognise that some charges are necessary in order to generate revenue for county councils to meet the shortfall but I am coming back to the point that I am totally opposed — and I hope we will be putting down an amendment — to powers being taken from the members of local authorities and invested in managers. This is wrong and a total denial of the rights of members of local authorities. I would hope the Tánaiste would see fit to change the provisions of the Bill in this respect.

I accept that some new system must be found. Reference has been made to the rates having been abolished in 1977 and the failure to find a proper system of financing local authorities. I accept that this situation must be remedied. It may be that the funding is to be from central funds. If decisions are left to local authorities, the powers should be restored to the members. I would hope that new legislation will emerge arising from the discussion on this Bill.

We hear a great deal about Dáil reform. If this Bill is an example of reform, in which powers are taken from members of local authorities and vested in managers, I have to confess to grave dissappointment. I would hope that a new system of financing will be found in the near future. There is a great shortfall to be met, a great deal of work to be done.

Every speaker to the debate has mentioned rates. Work cannot be carried out without adequate finance. It is a question of making the finance available. It is a matter of disappointment that there were considerable cutbacks in the Estimate for the Department of the Environment this year. Possibly during the year this matter will be remedied. I would hope that when the Tánaiste is referring to the debate he will indicate that the position is being reconsidered. I make a special appeal to the Tánaiste in regard to charges for planning applications for community centres and community halls. I would hope that such charges would be waived. That would be in the interest of everybody.

I regret that due to commitments earlier in the day I had not an opportunity to pay as much attention to this debate as I would wish and perhaps as a result I may repeat items that have already been discussed by other Members of the House. Perhaps it will not be too bad if I do that because obviously the persons most concerned about the introduction of this Bill are members of local authorities. I have been noticing from the monitor that those who have been contributing to the debate are for the most part members of local authorities with the dual mandate of being Dáil Deputies also. They are the persons most experienced to speak about this Bill and the general problems besetting all local authorities at the moment.

With hindsight it is easy to be wise. Probably every Member of this House and the majority of local councillors and certainly the majority of city and county managers would say, with hindsight, that in 1977 the implications of removing rates were not studied sufficiently. But perhaps it was expedient in 1977 to remove the rates; the removal of rates was something that was politically desirable; there was a movement from the people themselves for the abolition of rates and equally there was a problem that the implementation of rates was unconstitutional in its form at that time. All these matters combined to bring about the abolition of rates without a real understanding of what would happen. Around the year 1977, certainly in the greater Dublin area, an enormous amount of development was taking place and of all the times to abolish rates that was the worst time because the responsibility and the onus on Dublin city and county council became enormous with the development taking place in the city and, more particularly, in the county, where the three new satellite towns were being planned and commenced. If the implications of what would happen in the running of local authorities had been studied more closely perhaps we would not have this Bill before us today. We might have had a change in the rating system but perhaps not a Bill such as the Bill before us today.

I agree with what Deputy Sean Walsh and other speakers have said, that making these charges an executive function of managers is regrettable from the point of view of local councillors. I would like to remind the House, however, that the implementation of water charges by county councils has always been an executive function of the manager. The confusion that arose at county council meetings in Dublin was not so much the fault of the manager or anybody else as of the councillors because the water charge had been so small — £4.50 is what I was paying in Dublin. Very little discussion took place about it and in my time on the council nobody bothered to ask about the water charge except to discover that it cost half the amount of money that was brought in to collect and one of the comments made to anybody who delved into the matter was that it was the manager who imposed that charge. So far as the imposition of a water charge or an increase in the water charge was concerned that was always a manager's function. This Bill is extending that function to give managers authority to raise other charges and to give local authorities who had not that authority the power to raise water and other charges.

I would say, and I have already said it to the Tánaiste, that he should put a time limit on the provisions of the Bill. That would allay the fears of many local authority members that they will have very little role in the running of local authorities. I do not think that is what the Tánaiste envisages. I do not think any reform of local government should have that intention. We should consider the words "local" and "government". The thrust of local government reform must be to make local government more local. This is what I hope will happen when we come to apply ourselves to discussing local government and I hope this House will have an opportunity to thrash out how best that can take place. Many Members of this House have enough experience from their work on local authorities to come forward with a new structure that will be more applicable to the day-to-day living of people in housing estates, of schools and youth groups.

Some people may consider that this Bill is taking powers away from councillors that they have at the moment. However, they have not, for instance, authority to strike a water rate: this power resides with the county manager. All local authorities are burdened with enormous debts. Councillors do not have powers to expand services unless they cut back on other services. When we deal with the estimates all we are doing is moving draughts on a draught board. The Minister is trying to get the whole system of local government back on the rails again so that it can become local. As a councillor, I should prefer that all financial matters remain reserved functions but I accept the reality of the situation. This Bill will improve matters. As I have told the Minister of State privately, there must be a time limit on this Bill to allay the fears of councillors and to ensure that we mean what we say when we talk about local government reform. A time limit will ensure that this reform is carried out. We do not want the matter to stretch out ad infinitum. If I am standing in years to come for election to a local authority I do not want us to be still talking about local government reform. It must become a reality in the next few years.

I do not think the implications of the abolition of rates were properly examined. While abolition of the rates may have been of benefit to the ordinary people, with hindsight it has been accepted that it was an undermining of our democracy. The abolition of rates took from local authority members the powers they are asking for now. Perhaps people did not examine that aspect sufficiently at the time: if they had, a different decision might have been made.

Reference has been made to planning charges. Naturally people do not like additional charges being imposed. However, if one contracts a plumber to do a job in one's home one has to pay a fixed charge before the work is done. The planning charges were a legitimate way of ensuring a better service in the planning departments of local authorities. Cases have been made that community halls and similar projects should be exempt from planning charges. When the finances of local authorities become healthier I would agree with such a proposition. Any project of a community nature has a good case to make for waiving planning charges or for reducing the charges, but I do not think it is realistic at the moment to start exempting people when the finances of most local authorities are in such a bad state.

Among reasonable people there is an acceptance that money is scarce. For a number of years we thought there was a magic wand that could be used when money was required. There was no question about the source of the money: there was a magic pot with money for every project. It was rather like Jack and the Beanstalk, with a pot of gold at the top. Unfortunately the beanstalk was chopped down and cold hard reality is facing people now.

Perhaps for the first time members of local authorities are really examining their estimates. I was elected as a member of a local authority in 1979 but for the two years it took me all my time to make sense of the estimates books. I was quite prepared to be a little more than a rubber stamp because I did not really understand all the problems. The money was available and members were content to nod through estimates. Dublin County Council deal with 450,000 people. This year it took us five meetings to strike a rate. I was impressed by the depth of discussion on the part of every councillor. It was an either/or situation: either we raised revenue or we began to cut back on services. There was no other choice. For councillors who were first elected in 1979, this year was the first time they really faced up to the reality that they had a function to play in striking a rate and in examining estimates thoroughly. We decided that next September a special committee of the council will sit down with the manager and heads of departments and go through the estimates. We do not want a situation next year of just nodding through the estimates. The councillors will have a role to play in finding areas where saving might be made.

If the imposition of charges were to become a reserved function of councillors the possibility of putting a time limit on councils should be considered. Perhaps they should tell the manager in October that they want to look at charges and the maximum amount of money they will allow the manager to raise by way of charges. They should tell the manager that a certain amount of money will be raised which will work out at, perhaps, £50 per house. Thus, the manager will know he will get, say, £3 million in charges and if he needs more money he must make savings, he must cut back on services and become more efficient. In other words, we must ensure that councillors have to take the decision because there is a danger that councilors facing a decision in the teeth of striking a rate and preparing their estimates will be told by somebody: "Hold it, cut that thing over there but do not cut in my patch" or "Put a charge on such and such a service" because some councillor knows that it will have very little relevance in his constituency. We must take it out of the realm where each councillor is fighting for his own corner. In September or October before we even know what structure the estimates will take we must plan for, say, 1985-86, to raise £2 million or £3 million on charges at the rate of £30 or £40 a house. Thus the manager will know the parameters within which he must prepare his estimates. Deputy Flynn might look at that when he is going over his plans for local government reform. It is important that powers be vested in the councillors and that they be masters of their own destiny, because whether it is the managers or the councillors who put on charges the public will blame the councillors anyway.

For many people councillors and council are synonymous. The people do not see the difference between an executive function and a reserve function. If it is explained to them at meetings they will see it, but generally speaking it is the body corporate of the council. Councillors, albeit locally elected, become one with the council when elected. Perhaps there is a fudging in the minds of the general public and whether the manager or council bring in these charges it is on the heads of the councillors and any acrimony that arises will fall on the councillors. The suggestion to give the responsibility back as a reserved function in a couple of years, perhaps when the finances of councils become more healthy, is worth looking at. Perhaps written into any Bill or any new structure should be the provision that prior to the year of striking the rate the council would come together as a body and decide how much money they will raise the following year in charges.

Most reasonable people who are trying to build homes for themselves, run businesses, go to jobs and colleges and so forth realise that there is a need to pay for services. There is no need to go overboard and say that you can gather in millions of pounds by charging, but most people will realise the need for a service charge of some sort if the service is to continue and be efficient. Deputy Molony talked about the burden on local authorities. I have mentioned this at many council meetings. It would be better if this House did not continue to bring in legislation which in turn is put on the backs of local authorities with none of the finances necessary to implement the measures. It would be better if we were not blinding the public by saying that we brought in this Bill or that Bill for the local authorities to implement, so complain to them. That is central Government closing their eyes to the reality of what they are doing and bringing unfair criticism on local authorities because something is not working when, in turn, they cannot make it work.

Examples are the Casual Trading Act, 1980, the Litter Act, 1982, various Acts relating to the control of dogs, social welfare payments — although local authorities get back grants on that. The Casual Trading Act, 1980, came to my local authority, Dublin County Council, and it is probably more relevant in Dublin county than anywhere else in the country, particularly in view of the enormous numbers of travelling people and itinerant population in County Dublin. The local authority in County Dublin have not done one iota to implement that Act, nor can they do so because they have not one single penny left over after striking their rate and preparing their estimates.

That is where the advantage lies of a Bill such as this, despite complaints levelled against it. If at local authority level we could get the power back into our own hands and not leave it in the banks or the lending agencies perhaps we could start to tackle some of these provisions of good Acts which have to be implemented by the local authority. We continue to get complaints from local residents about all the problems associated with casual trading and that will continue for years because Dublin County Council have no money to implement the Act.

The Litter Act, 1982, was a fine Act welcomed by everybody in this House. It is absolutely essential to raise the stupid fine of £5 for somebody who pollutes or litters the countryside and is brought to court. It is worth the fiver to him because that is less than the cost of petrol to take him to the tiphead and it is worth his while to dump in the ditches and roadside, in north county, south county, east county and west county and into the sea. The Litter Act was good legislation but it was put into the hands of the local authority. After a few months Dublin County Council from the on-the-spot fines — the only financial provision available to the county council to implement the Act — had raised £35. That is seven fines at £5 a go and it would not pay for even the printing of the tickets they had to give out to people on the spot and certainly would not pay the salaries of the litter wardens who had to implement the provisions of the Act.

I would prefer to see a maximum fine of £500 imposed on somebody convicted in the courts under the Litter Act and that money should have come straight into the coffers of the local authority on whose back the job of implementing this Act was laid. I hope that central Government will see the wisdom of that and when they hand these Acts to the local authority to be implemented they will allow the local authority to get the revenue from such implementation. Thus the local authority will not end up with the nasty part of it, with all the funds going into central Government. At least the local authority then would have the power, having obtained £X,000 from fines, to make available depots for cars and so on, so that people who have finished with their cars can bury them at the local depot and not leave them on the side of the road for the litter warden to collect.

These extra burdens which have been put on local authorities without the finance necessary to implement them have given rise to unfair criticism of local authorities and of local authority members, because all they can say at meetings is that, while we have a Casual Trading Act, and a Litter Act, they have not the money to provide the people they represent with the various advantages of these Acts such as special dumping grounds for old cars, old television sets and so on that we find in the ditches. Present policy is somewhat shortsighted. If those Acts could be implemented properly savings would accrue elsewhere and litter wardens and other staff in the administration would not spend weeks writing to councillors saying that such a car should be removed and so on. I would prefer that we did not continue to pass Bills here unless we can make local authorities work on them.

The Bill we are dealing with is giving an executive function to the manager, but it is a discretionary executive function. In other words, there is not automatically an onus on the manager to impose charges on any county council, city corporation or urban council area. It is discretionary — in other words, if a county council are already dealing with their financial problems properly and have managed to balance their books, there is no need for these charges. It is a discretionary executive function which I hope will soon be on the Statute Book, but the discretionary element would come into play when the manager had balanced the books but may want to bring in a new scheme. The charges will come into their own when, perhaps, the public would like to see a golf course built. If there was no money, there would be a good case for introducing a small charge so the public could see what they are getting for their money, because people complain about having to pay when they are not getting a good service. We can all recollect times when we did not get a good service in water and so on but, generally speaking, most of us are satisfied. Nine out of ten times our bins are collected, water comes out of our taps and we are able to flush our toilets. Local authorities provide a good service in most areas. I had someone complaining to me this week that two bags of garden refuse were not collected. Dublin County Council do not normally collect hedge and grass cuttings. After she had complained for some time I asked her how many times her bin had not been collected in the last six years and she said that, in fairness, it had happened only once. It would be wrong to imply that local authority services of the kind that are most relevant, the provision of water and bin collections, do not work properly.

There is a wider aspect to the services that people have come to expect and do not always associate with local authorities. They provide for the maintenance of graveyards, community grants systems and so on and they give a human face to the local authority. Local authorities are no longer synonymous with sewers and drains, roads and pot holes. They provide a community grant for scout dens, play groups, tidy garden and art competitions, things which are relevant to day-to-day life. That is the best part of local government and we should be capitalising on that aspect. Last Sunday I was present at the Dublin County Council civic award ceremony involving a number of youth groups. This scheme was introduced last year and there were 30 entries from schools with children whose ages ranged from 11 to 16 or 17 years. Two of their projects have been selected to get further financing through a community grants scheme. If we not get rid of the debts that exist in local authorities these will be the first schemes to suffer because, strictly speaking, they are not essential services. You cannot close all the sewerage works in an area because you are short of money but community grants would almost certainly be cut. These are the schemes which give the most satisfaction to all hard working councillors in the county. We must not have a situation where money put aside for community grants is used to fund more essential schemes which do not give so much pleasure to the community.

There is an onus on the manager to introduce charges but he must be very careful to recognise that there will be people who literally will not be able to afford them. Undoubtedly, in any scheme there will always be a need to waive charges for some people. Humanity must be shown to people who cannot afford charges. In Dublin County Council, where we have increased our water charge to £30, we have introduced a scheme recommended by the manager which will allow people on certain State benefits to apply to have the charge waived. It would be a sad day if an elderly person felt that because they could not pay for water they could not use it and perhaps, as a result, would suffer ill-health or death. However, some of the schemes we have introduced over the years have perhaps left a little bit too much leeway and have cost more to implement than the revenue they raise.

We must look at the advantages of this Bill because any local authority member who is doing his or her job has to face up to the fact that we are no more than rubber stamps until we get our county council finances into a healthier state. City and county managers have a very strong, active organisation and they should use it to ensure that there is uniformity of ideas as to how charges will be implemented so that we do not run into further serious problems. In a case where a city and county border on one another, or where a dividing line between the two areas is between No. 60 and No. 61 on a road, we must ensure that the occupant of No. 60 is not paying more than the occupant of No. 61 for what appears to be the exact same service. One of the advantages to be gained from this Bill is that the city managers are a smaller body than that of councils and local authorities and perhaps there is a better chance of having fewer problems related to the introduction of charges if they discuss this matter very carefully before they come to the council and say they are putting on a charge. City and county managers should sit down together and decide how best to implement these charges in the most humane of ways.

I look forward to the day when this Bill becomes redundant and when even the introduction of charges could become redundant except in cases where a new type of service or scheme is being introduced into a council area. In other words, the charges would be in the background as a way in which, for a short time, a county council can raise money to buy, perhaps, a public park for an area, open a golf course, a new graveyard or provide some new libraries. The public could then see that these funds were being used properly. If local authorities got down to the job, they could make many savings in present expenditure. It is a fair comment and a warranted criticism that many areas in public spending at local authority level are not giving good value for money. The many councillors who are also Members of this House have a special duty because of this dual mandate and know how difficult it is to get any more money for anything. We have a responsibility at local authority level to carefully scrutinise expenditure. There may be areas of waste and inefficiency. Perhaps banks of land are building up which may never be needed for a productive purpose at council level. Now is the time, when faced with the introduction of charges, for councillors, managers and staff to examine acreages of land which have been owned by the council for many years and which they will never be able to develop because they are landlocked or waterlogged. If this land were sold for a more productive purpose that finance could be used in a better way at local level.

I do not welcome any diminution of the authority and power of local authority members. However, this Bill at present is essential. If councillors examine their consciences they will realise that it is needed. I hope the Minister will amend the Bill to make it of limited duration and follow its introduction with sound proposals for local government reform.

I did not think that I would have anything in common with the Fine Gael Deputies, but we appear to have something in common. I oppose the manner in which this Bill was brought about and am delighted that so many of the Fine Gael backbenchers have done likewise. I hope that we will not have to wait one or two years but that they, through the parliamentary system, will exert as much pressure as possible on their Ministers and the Cabinet to ensure that this legislation will not be implemented. This is a change from a democratic system for local authorities to a form of dictatorship by local authorities, possibly at the end of the day resulting in the abolition of county councils. If we allow the county managers more executive functions than at present, apart from the 1968 function in relation to water charges, they will have the power to charge for all services except street cleaning and public lighting which would be the sole responsibilities of the councillors.

At this stage, prior to the local elections in 1984 we must decide whether the councillors will have power or not. This Bill would give the manager functions which he should not have. Anyone in favour of this must believe that the councillors are not responsible enough. Many councillors are Deputies of this House and they are responsible enough. If we believe that extra finance is required, we are capable of discussing the question of charges. This is rates, not by the back door but by the front door. It is a substitute for the shortfall in the domestic relief and the agricultural grant.

This Government and their Department of the Environment owe Donegal County Council £800,000 and they are asking us to increase our water charges and various other charges to make up that shortfall. We have no intention of doing that. If it is possible to institute proceedings against the Department, we in Donegal will take the initiative. The quicker the Minister repays us that £800,000 the less chance there is of our taking the Minister to court.

The Deputy would not do that, would he?

Not to the Minister of State personally.

To get me for £800,000.

We must again look at the executive and the reserve functions of the manager. There is much ambiguity between the circular sent out to the various councils on 10 May 1983 and this morning's speech of the Minister for the Environment. The council suggested that the functions would be executive functions and the statement today to the House is as follows:

The basic responsibility for deciding on the amount to be raised by charges will fall to be exercised by the council members in the context of their decisions on the Estimate.

That certainly contrasts with the circular of 10 May which states:

The charges functions assigned to local authorities under the Bill will, as executive functions, fall to be performed by the manager.

I ask the Minister of State, when replying to this debate, to clarify the position. This appears to be another way of introducing a monthly budget through the councils. Practically every week there is a budget through increases and ministerial orders, apart from the budget itself. The county manager is being asked to collect taxes on behalf of the Minister for Finance. It is unfair of the Government and the Minister to pass on these charges to the county manager and ask him to act as Minister for Finance on behalf of the Government.

The councillors are responsible for the maintenance of courthouses, piers and harbours and sheep dipping pens. The charges in relation to courthouses should be the responsibility of the Department of Justice or of the Office of Public Works. The return from these buildings to the council is practically nil. Piers and harbours should be the responsibility of the Department of Fisheries and Forestry and possibly, in Gaeltacht areas the responsibility of Roinn na Gaeltachta. In regard to sheep dipping pens, it is unfair that these should be the responsibility of the councils. They should be the responsibility of the Department of Agriculture under ACOT or the local offices.

On the question of roads, the Minister should seriously consider the block grant situation. At the moment, particularly in my county, it is practically impossible for councilors or the county engineer to decide where the money should be spent. The decision comes largely from the Department of the Environment. I hope the Minister will consider favourably the suggestion to allow the councillors to decide how the block grant should be allocated. Nobody knows better than the councillors, the county engineer and county manager where that money should be spent. In Donegal we have a national primary road from Bundoran through Ballyshannon, Donegal town and on to Ballybofey and Letterkenny.

There is an area in west Donegal where we have largely main and regional roads. These are the main arteries from east to west, from Gweedore and Dungloe through to Ballybofey and Letterkenny and from Gweedore to Kilmacrenan. We have no money to improve these roads to any great extent. I ask the Minister to make money available to us so that we will have a main artery from west to east. The Minister has promised to come to Donegal and I hope that when he does he will not stop on the national primary roads. When he sees the roads I am sure he will be in favour of making money available to repair and improve them.

Industrialists are deterred from coming to this part of the country. We have a very high unemployment level and are not proud of the fact that 10,000 are unemployed. Most of this is in west Donegal. One of the contributing factors is the infrastructure, particularly the road system. I cannot describe how serious the situation is there. The potholes are so large that if we got a newsflash that Shergar had been found in one of them it would not surprise me.

If you could sell him you would recoup all the money you need for the roads.

Essential repair grants, disabled persons grants and housing grants are administered by the local authorities. We should consider having new house grants administered by them as it would expedite inspections and payments. A new house grant can only be paid when the house is lived in. It can take some time for an inspection to be carried out particularly if an inspector has to come from another part of the country. If a file is sent back it can take many months before a second inspection is made. If this was dealt with by the local authorities it could be done more expeditiously.

Home improvement grants could be administered by local authorities. It takes many months from the time an application is submitted to the Department of the Environment before an inspection is carried out. Many people are frustrated by the conditions in which they live. They decide to commence work in the belief that the Department will look at their application sympathetically and make the grant available. If the foundations are dug these people do not qualify. Until such time as the Minister decides to decentralise the administration of these grants he might try to expedite the inspections.

The Deputy is aware that it was Fianna Fáil who centralised them.

The Deputy is also aware that it was Fianna Fáil who introduced the £1,000 grant. I will applaud the Minister if he increases that grant or any other one.

Increase it by £50.

I would remind Deputies who appear to have an interest in Donegal that the Minister owes us £300,000 in respect of housing loans. People are crying out for this. People with bridging loans who have the roof on their house have difficulty in getting further advances from the bank. In Donegal it will take £4.87 million in housing loan grants from the Department to suffice for 1983.

This is not relevant to the debate.

When the Minister was fast asleep there were many things said by Deputies on that side and they were not relevant either. The Minister should not try to bring in red herrings.

On a point of order, the Deputy suggested that the Department were withholding money to the tune of £300,000.

Would the Deputy elaborate on what he means?

Donegal County Council are awaiting £300,000 from the Department of the Environment.

For work sanctioned?

Yes. The Minister intends to make dictators of the managers. He is going to give them more authority.

The Deputy is not being fair.

We require £4.87 million for housing loans and supplementary grants this year. To my knowledge all that has been made available is £2.8 million. I hope the Minister will ensure that a further £2 million is made available to help those who are in debt to the bank at present and who have commenced building houses in the hope of receiving advances from the Exchequer.

As regards the charge of £30 per house for planning, it could be argued that this is reasonable in view of the fact that many inspections are carried out. The Minister should look at the cost of £1.75 per square metre in relation to buildings. In my constituency many small business people are endeavouring to set up in business and give employment. Prior to any sanction from the IDA or Údarás na Gaeltachta they must obtain planning permission, which can cost between £600 and £3,000. This is penal and another form of taxation. It deters many people from going ahead.

I ask the Minister, not in the light of what has been said on this side of the House but in the light of what has been said on the other side, if they have the numerical strength to pass the Bill, to refer it to the councils. The Bill will relate to reserved functions rather than executive functions. Otherwise it will be pointless having elections, because if the Bill is passed as it is now there will be absolutely no need for county councillors in the future.

The Local Government (Financial Provisions) (No.2) Bill, 1983, has called into question the functions and financing of local authorities. The kind of speeches we have had today indicate the difficulties that members of local authorities have been experiencing in recent years. This Bill has been given very careful though within the Cabinet and within the Government as a whole. With reference to the last speaker I should like to set the record straight in relation to the Estimates that were inherited by the present incumbent of the office of the Minister for the Environment. Those Estimates showed clearly that there was a £96.5 million shortfall relating to that Department. When the Coalition were returned to office they allocated an extra £31 million to the Department thus leaving a shortfall of £65 million compared with the £96.5 million that would have been involved had Fianna Fáil been returned to office. This would have meant that the charges to be implemented under the previous Government would be of the order of 50 per cent higher than will be the case now.

It does not mean that at all.

I have reservations about some provisions of the Bill but I assume the legislation will be of a temporary nature and that we are not discussing a measure which represents the thin end of the wedge for the years ahead. The Bill will give local authorities general discretionary power to charge for the services they provide. That is reasonably fair on the assumption that people should expect to have to pay for services that are provided for them.

For some time there has been a great need to clarify the future role, the responsibilities and the functions of local authorities. The Chair is only too well aware of the number of council meetings which take place throughout the country and which are attended by councillors who are diligent in their work, who do the best possible within the constraints placed on them but who spend hours waffling about nothing because of their powers having been eroded down through the years. Their diligence and their dedication to duty on behalf of the areas they represent have never been recognised. Out of all of that has come a clear need for a clarification of their functions. Up to now local authorities have never been aware of what moneys they were allowed to raise. They were unsure of State assistance and of the limits being fixed on the additional revenue they might raise while there were no limits to the demands that other bodies could make on them. County councillors never had a clear picture of their role. For some time there has been acceptance of the need for guidelines in this area. Local authorities must have meaningful decision-making powers if they are to function properly in the years ahead.

The services in respect of which people are expected to be levied will be left to the local authorities in terms of the level of the charges. I have doubts in some cases about the co-operation and the relationship between managers of various local authorities and members. There may be instances in the future where county managers overstep their authority and seek to use this discretionary power in a way that would be more relevant to dictatorships. What I am talking about is a situation in which councillors might find that the wishes they expressed on behalf of the people they represented were not adhered to by the county manager in introducing the charges we are talking of.

There has been a general acceptance already of the proposal to impose charges in respect of planning applications. In the past it was unfair to have a situation in which vast numbers of planning applications had to be processed by local authorities without there being any payment involved. In many cases applications might not have been proceeded with until such time as the statutory date of validity had expired. A matter that has been raised recently is the levying of charges in relation to planning where community centres and other buildings being provided by a local authority for the community are concerned.

There should be a recognition in the Department that, despite these difficult economic times, there is within the community a very great willingness to co-operate on ventures that are of community benefit. Where communities have to raise substantial amounts of money for such buildings it is unfair that there be levied a service charge on a square footage basis. This might involve the community in additional thousands of pounds while the building concerned is one that should have been provided by other authorities down through the years but which was not provided because of a lack of the necessary facilities and willingness to do so. Some leniency and concession should be shown by the Department in recognition of the efforts within communities to provide such facilities for themselves from their own resources.

It is unfair that local authorities should be levied with demands in respect of which they have no input. I speak of arterial drainage, of social welfare supplementary allowances and of various education charges and indeed the combined purchasing charges which often are levied on local authorities. These are functions that belong rightly to the Exchequer and to the Departments under which they are headed. There is no point in various local authorities having to fork out substantial sums of money under such headings.

When the reform of local government takes place those functions should quite rightly be transferred back to the various Departments. This is an area that needs streamlining and must be considered within the context of the reform of local authorities.

Reference was made to various pieces of legislation introduced by this House but in respect of which money was not provided by the State. The Litter Act, for instance, was one of the biggest jokes ever. It was a piece of legal rubbish. We still have the situation in which people can drive into our scenic areas and dump any refuse they wish. It is impossible for local authorities to have litter wardens dispersed through the bushes taking photographs of those people or taking car numbers so that they might be apprehended and eventually fined £5. A little foresight in the House might have helped a lot in terms of making available to local authorities the facilities to enable them to implement such legislation.

Deputy Gallagher spoke quite rightly of matters in Donegal. Two matters came to my notice recently although these may not be relevant to the Bill. The first is that many young couples who build their own houses must build them as cheaply as possible. If they avail of either a Housing Finance Agency loan or, as I would prefer, an SDA loan, they tend to build the houses by way of direct labour. They usually have the houses designed either by an architect or by a draughtsman. Usually it is designed so as to be very close in square footage to the limit for eligibility for a new house grant but often if the foundations are not perfectly square and in accordance with the drawings, it may be found that the house is five, ten or perhaps 20 square feet over the legal limit. Through no fault of their own the couple concerned are deprived of the benefit of the £1,000 grant. While the additional area might be only very small, the task of bringing it within the limit by, say, moving a front door or a back door could prove very awkward.

Although there is a statutory regulation in this regard I would ask the Minister to consider a system based on a penalty clause whereby, for instance, a person whose house was deemed to be 10 square feet greater than the legal limit would qualify for the new house grant but would be penalised to the extent of, say, £10 for every excess square foot. In other words, in the example I am giving, the grant would be £900.

The Deputy is outside the limits of the Bill.

The Bill refers to charges in relation to planning permission and other things. I know I have strayed outside the Bill but I wanted to make that particular point. In many cases the rents charged by local authorities in relation to the houses they build are very reasonable and the waiver facility which exists for county managers is applied fairly across the board. One aspect of that is that the repairs needed to be carried out to houses by local authorities often take a very long time to carry out. I ask the Minister to look at the youth employment scheme or the AnCO scheme in relation to local authorities because very worthwhile training could be given to young people under supervision in carrying out repairs which are not major repairs and which could be carried out very effectively.

It is fair to say that local authorities have experienced a growing incapacity to maintain their services to say nothing about developing them to the limits which are necessary in this day and age. If we take 1976 as the base year for inflation, road construction costs and rates, we find that in 1979 these had increased by 138.3 per cent, 166 per cent and 136.7 per cent respectively. In 1982 inflation had risen from 76 per cent to 241.3 per cent, road construction costs went up by 300 per cent and rates increased by 193.7 per cent. It is very difficult for local authorities to expand their services to the level which people are now demanding in relation to the facilities they see in other local authority areas.

The western counties in particular, having very large expansive grounds to cover and having a lesser density of population have never had the buoyancy of currency to give them sufficient money to develop in the years gone by to the extent which more densely populated smaller counties have been able to do. This has discriminated against local authority areas in larger counties where the ceiling of rates has been placed by the Exchequer over the years. The introduction of charges with discretionary powers and with waiver rights is something I welcome as far as county councillors are concerned. I have my doubts about the ability of some county managers and their relationship with members of local authorities to do this effectively. Many councillors have been forced by the erosion of powers over the years to spend their time in county councils talking about notices of motion for which there is no money to implement, talking about section 4's which are forced on them by political pressures and other minor irrelevancies which take up the time of county councils and local authorities, which are quite expensive in relation to attending at court, as Deputies know.

The road grants which are paid on national routes are paid specifically in areas selected by the Department of the Environment. All the local authority engineers can do is adhere to the pressure of county councillors in relation to the deterioration of the roads in certain sections and hope for the best after that. Payments are made by instalments in arrears. It could be argued that grants are payments for work done by the local authorities for the Department. The short-term financing cost of undertaking the work in advance of payment should be recouped by the local authorities. The grants that are made payable by way of subsidy towards the cost of loan charges incurred by local authorities in financing capital works are recoupable 100 per cent in many cases in respect of housing loans and there is 50 per cent or 60 per cent subsidy on sanitary services. The State recoups the local authorities in relation to the excessive expenditure. This whole area must be taken into account in relation to the reform of local government.

The charges which are presently placed on local authorities in respect of unemployment assistance, arterial drainage and other areas should be referred back to the relevant Departments. It is not fair to have local authority members presented with a very large bill at the end of the year in relation to something they have had absolutely no input into whatever. The role of local authority members and the dedication of county councillors has never really been recognised by any Government over the years. These men and women throughout the country do their best in very difficult circumstances to represent the people who democratically elected them. I believe if those people were given the opportunity of discussing the levies, the size of charges or the amount of charges to be created by local authorities they would certainly do so in a responsible manner. I have some doubts about the ability of some county managers to do this effectively. It is essential to clarify their responsibilities and their roles in accordance with some clear-cut principles.

I believe people accept the introduction of the charges. If people are going to get a service they are prepared to pay for it. There are many instances of small communities throughout the country raising very substantial sums of money in a short time for facilities which have not been provided by local authorities or by the State. There is a willingness among people, so long as it is equitably spread across the board and so long as there is justice in it, to pay for their services.

The refuse collection charge needs to be looked at. If you have a person who is supposed to collect refuse charges who walks down a street and tells people that they must pay for this service and that their refuse will be collected each week those people have the right to say that they are prepared to go to the local dump with their refuse. They also have the right to go out on the street that night and dump their refuse in the middle of the street. The responsibility is then on the local authority to clean it up without asking for any charge. The charge is then put on the taxpayers of the particular county.

I welcome the Bill from the point of view that people are prepared to accept charges in respect of services provided for them. I have some doubts about the county managers having absolute rights in relation to the amount of charges to be introduced. This will be seen in some cases as an erosion of powers of local authority members. I ask the Minister to look at the overall duration of the Bill. I hope it will be temporary only and when the Local Government Reform Bill comes before the House that a solid, progressive look will be taken at the financing and functions of local authorities and that there will be a clarification of their role.

(Dublin North-West): My contribution will be brief. As a member of Dublin Corporation I am very concerned about the implications of this Bill. Some people have said here that it is rates by the back door but to me it is rates by the front door. We are in this Bill giving county and city managers executive powers and we are taking away any power the local representative had. Those managers will dictate to the councillors and we are giving them the power in this Bill to do that. It is interesting to note that all the speakers on the far side do not agree with the implications of the Bill because some of them can see what will happen. It is also interesting to note since rates were taken away by a Fianna Fáil Government that many Fine Gael speakers especially have cried out loud to have them brought back.

Deputies on the far side of the House have spoken about the waiver of the charges when cases can be made of inability to pay. In my constituency I would say that more than half of my constituents could declare inability to pay. Deputy Owen said earlier that up to now local councillors were only rubber stamps. The way I see the situation now is that managers will dictate to us. There is a list of charges mentioned in this Bill and I wonder how many people will be able to pay these charges. For instance, many young people who have bought a house, who saved very hard in order to buy their homes and who are now paying up to £300 and £400 per month, will find that they now have to pay these additional charges which, in respect of the number of services that will be provided, could amount to another £300 or £400 per annum. I would be interested to know what additional services will be provided. I hazard the guess that there will be none, that rather we will be paying for the services provided already.

If we look at the position in relation to planning, any local person objecting to some building being erected in their area must pay to lodge their objection and, if they are unable to pay, the building will go up. It seems to me also that house-building will decline because of the charges builders will have to pay, referred to by the last speaker also. In this respect the building industry will decline even further because people will be unable to buy houses on account of these additional charges.

Some Deputy on the far side of the House spoke about local government reform and maintained that, when such is being done, these functions will be transferred back to central Government. There was mention also of the Litter Bill. I must say that its provisions in the Dublin Corporation area have been operating well. There are now litter wardens who are doing a good job.

I am concerned mainly about the ordinary householder who must now meet these charges. I remember back in the sixties when there were large protests in this city on account of rates. People at that time were charged perhaps £200, £300 or £400. Many of them were unable to meet these charges and cases were brought before the courts. I fear we will see the same thing happen in the very near future. I totally object to these charges. I know my colleagues in Dublin Corporation have already lodged their objections in the City Council.

One would think, listening to a number of Opposition speakers, that local authorities and the Government had sufficient money to provide all of the services people expect to be provided, or that they could be provided on hot air. The Opposition spokesman knows very well that when car tax was abolished and rates removed from houses in 1977 local authorities throughout the country were starved of finance to keep them going.

Tax on cars did not go to local authorities.

Some of it came back to them, as the Deputy well knows, since he was Minister for the Environment. It was money to the Exchequer, some of which at least was returned in order to provide better roads, roads which have been deteriorating rapidly ever since.

When I became a member of our local authority in February 1975 our estimates for that year amounted to approximately £11 million. Our estimates for this year amount to almost £22 million. It takes that huge amount of money to pay for the services people require of us. We are now collecting about 70 per cent of the refuse of the entire county. The local authority, with the help of the Department of the Environment, provided group water schemes throughout the county. In our county we struck a water rate four years ago to pay for the extra services we were then providing. I might say also that in 75 per cent of the villages throughout the county we have provided not alone water supply but sewerage schemes. Again, that was forward planning. Today, unfortunately, because of mismanagement in the long-term, we must now charge people for the service we have provided. Take any individual or any young couple wishing to build a house for themselves in a rural area, it will cost them at least £1,000 to provide a water supply and at least £500 for a sewerage system. Then they must pay the ESB to keep their water pump going. A small charge to such people for the services being provided by local authorities is now only right and proper.

There is one aspect of the Bill with which I do not agree, that is I would hope that within a year or two the powers that the Department of the Environment are giving to local authority managers would eventually be given to members of local authorities themselves.

There is nothing in the Bill to say that these powers are being granted on a temporary basis; they are being given now on a permanent basis.

I did not say there was. I am asking the Minister to give us an assurance that those powers will be given on a temporary basis.

Now is the time to change it before it becomes law.

At the time we introduced our rates we did so to provide the services obtaining in our county. Indeed, I would say ours could be regarded as a forward-thinking county. In regard to forward planning for the provision of the services I mentioned earlier in our towns and villages, we were lucky to have the county managers we had. If a service had to be provided we were always prepared to strike a rate which would provide that service. I trust we will be given the requisite powers within a year or two years. We have not yet got over the implementation of the 1977 policies which took most of our powers from us.

What about the snow clearance money? Perhaps the Deputy would remind the Minister to send that money on.

The Deputy had his own Minister last year. He is trying to pass the buck now.

The Deputy is in Leinster House now, not County Meath.

Housing grants were mentioned and we are delighted they still exist. They were restored by our Government in 1981. The giving of both grants should be the prerogative of the local authorities. I would suggest that people who have received a grant within the last ten years should have the waiting time reduced to three years. At the time they may not have had the money to do a proper reconstruction job, but now with a family growing up and more money coming in possibly they would be able to do whatever reconstruction is necessary. I suggest they should be eligible for a reconstruction grant within three years.

Every county should have an inspector based within the county. Now inspectors have a couple of counties to look after and people have to wait perhaps two or three months if they miss the inspector on the first occasion. I would like the Minister to look into that. I suggest too that the block grant from the Department should be distributed by the engineers and the county manager instead of the Department deciding where and how it should be spent.

People have no objection to paying for services. We all know nothing is free. Those who would resent having to pay are few and far between. As things stand certain sections are paying for everything that is provided, be it refuse collection, water supply or health services. We have only one-third of the population in work and that one-third has literally to pay for all the services. Irrespective of who forms the Government the moneys requisite to pay for the services provided must be collected. There is no way out. Things are very different today from what they were in the sixties and seventies. My ambition is to provide people with all the services they require, but if we do not have the money we cannot provide the services.

The roads in my county are in a dreadful state. They have deteriorated very badly. The Minister visited our county recently and so he knows what the problems are. We are unique because of the amount of traffic using our roads. Remember, we are on the verge of Dublin city. We shall need more money to repair and reconstruct our roads. I trust it will only be a matter of time until we receive the necessary finance.

Some speakers maintain people will not be able to pay these charges. I do not believe that. The charge will be minimal. There may be criticism but the local authority member who cannot stand up to criticism is not worthy of being a member of a local authority. I never had any hesitation about voting to increase the rate if by doing so we were improving services. I am talking now of the time when we struck our own rate. It was a much better day for the councils when they made such decisions themselves.

In my county we have a water rate. Some years ago we suggested at a sub-committee meeting that we would use that money to help to provide other water supplies in small villages and rural areas. There was a good prospect of developing the whole county within ten or 12 years. If Fianna Fáil had remained in Government they proposed that the total amount to be raised by local authorities would be £96.5 million. This Government provided an extra £31.5 million which reduced the burden on local authorities. Fianna Fáil did not say how they would require local authorities to collect the money but I am sure it would have been done in much the same way as we are proposing. Fianna Fáil have criticised what this Government are proposing but I do not think their proposals would have been different. We would be told that the manager had the authority to introduce these changes and we would also be told we would have to implement them if we were to provide services.

I would be very reluctant to see county managers having this absolute power in the years to come. I am totally against such legislation. Many members on local authorities said at the time of the abolition of rates that it would leave them without any powers. I agree with that. We did not abuse those powers for the sake of political gains. I have been a member of a local authority for more than eight years and I am confident that we used our powers in order to provide the services required by the people.

I should not like to think that we would continue to downgrade local authorities and their members. Elected members of such bodies are best able to deal with local affairs. I am chairman of the local committee of ACOT. The establishment of the head office of that organisation recently has meant that members of local authorities and of county committees have lost the powers they had in implementing schemes. In my county those schemes were exceptionally worthwhile. Because of the policies of the late 1970s and the 1980s local committees have money only to pay members expenses for six months. In 1977 local authority members were deprived of their power to strike a rate. That meant ruination for the local authorities. It meant they had to await a decision from central Government with regard to the striking of a rate.

By giving local authorities power to implement charges for services members of such bodies will be retrieving some of the ground they lost in the past two years. All members of local authorities will agree that they have been undermined by central authority. Ministers in all Governments have not tried to justify the position of local authorities. Legislation from Central Government is not the best way to deal with local matters. When local people make representations to us about services, we should be able to tell them the exact position. At least local authorities now will have a say in what happens to the money that will be collected for the services they have to provide.

Business people must pay rates. They are the only ratepayers left and only about 600 are left in my county. If they are paying rates we must take into consideration on their behalf whether we will clamp a large charge on them for services for which they are the only people now paying into the local authority system. I would be against that. On the other hand, large urban populations have not had to pay charges for water as such. What is good for one is good for all and if everyone is involved it cannot be said that one section is paying and the other is not. I hope that people who are paying rates at present on their business premises in urban areas will not be asked to pay again.

Does anyone welcome the introduction of charges on any section of the community? No. For years we have been trying to improve the services but as long as people who were voting for us as politicians did not have to pay, that was all right. We cannot run away from the fact that the money is not there. The £65 million of which the local authorities are short must be found. Nobody in Government and no Minister for the Environment want to see local authorities going bankrupt, but that will happen if we do not collect moneys from the people for whom services are provided. I agree in principle that the services should be continued and improved and the only way to achieve that is to charge for them. However, I do not agree in principle that the county manager should have total control in coming to council meetings and telling us what he is going to charge and councillors themselves not having a say in that.

Would the Deputy support our amendment on that?

It may be said that we do not want the job of implementing charges. I never ran away from my responsibilities and as an elected representative either on the county council or in this House. If things were the other way around would the Opposition spokesman vote with me if I wanted an amendment put forward? I am sure that he would do the very same thing as I am doing now.

Do you ask us to accept a Bill that you do not like?

I am not saying that I do not like it.

You did.

Deputy Farrelly without interruption, please.

You must face the reality, Deputy Molloy, that the money must be collected. The local authorities were short £95 million. We are giving them an extra £31 million and they have to collect only £65 million.

You said it should not be an executive function. Talk to your Minister and get him to change the Bill.

A Cheann Comhairle, as I said before you came in, we have here a continuation of opposition for the sake of opposition.

That is not so. This Bill needs to be changed.

Opposition to everything that was to be implemented by this Government was wrong. You know in your heart and soul that the money must be found and if you were in the same position you would be implementing the same charges right along the line.

Deputy Farrelly should address the Chair.

I am asking the Minister to have a look at the points I have put forward.

I want it to go on record that I disagree with the managerial function whereby a manager can put charges on local authorities with his own consent. That means that we as county councillors and elected representatives have no longer a function to play in local authority. The powers have been taken away gradually from elected local authority members.

I disagree with quite a number of the planning charges. I do not disagree with the £30 charge for planning permission for a bungalow, but if you wish to apply to have a community centre built the local community must pay a planning charge. I do not agree with that. Because a community centre is provided by the local people in that community they must raise money to provide that community centre and if they are to be charged from £300 to £600 for planning permission that is a crying shame because that money is so hard to raise at the moment. This will discourage people who are thinking about going into business, perhaps providing a small factory for themselves. They will have to think twice if they have to pay a large sum of money with their planning application for that little factory. If you apply for planning permission and your application is turned down I believe that your money will not be returned. I disapprove of that. I hope that the Minister will change that provision. You should not have to pay for something that you did not get.

Putting charges on people who cannot afford them is a pretty tough thing to do. Quite a number of people are unemployed at the moment. If we are trying to put extra charges on them for water, refuse collection and various other things I am afraid these people will be unable to pay because unemployed people find it hard to manage on the few pounds they are getting. If we are putting charges on people who are living in local authority houses and who are unemployed, I ask the Minister to try to have that small charge included in their rent because they would not be able to pay £30 or £40 for water rates.

The previous speaker said all the damage was done in 1977. We are sick and tired of listening to talk of damage done in that year. The Government should decide on what steps they are going to take to remedy the damage done in 1977 and they should not be crying about the damage that was done then. The Government were elected to govern and they should get on with the job.

There was an awful lot of damage done in 1977.

I welcome the opportunity to say a few words on this measure. It is appropriate to state at the outset we all agree that, in general, a total overhaul of the structures, functions and powers of local authorities is appropriate. Obviously, the mechanism for financing the operation of local authorities is an intrinsic part of such an overhaul. I understand the Minister is well advanced in consideration of the general reorganisation of local government and I should like to commend him in his work thus far. It augurs well that he is applying himself so diligently to the job in hand, because for many years very little was done apart from facilitating the demoralisation, if not disintegration, of local authorities.

This measure has a number of interesting aspects. I followed the debate closely throughout the day and the discussion, from the point of view of the Opposition, had been somewhat negative, especially when you consider that if the dice has fallen differently some months ago their tune would probably be very different now. I have served on a local authority since 1974 and one of the regular refrains from all sides of the House in that council has been a demand to give more power and control to local authorities. Unquestionably, one of the ways of doing that is to give a local authority some degree of flexibility in relation to raising their own finances. For many years I felt strongly that the kind of power without responsibility that the local authorities exercised was a bad thing because it allowed councillors, perhaps with every good will and benevolence towards the community, to levy rates without any regard for the source of the funds.

This exercise here means that all local authorities will be forced to think about where the money is coming from. That kind of responsibility is good for us all, as citizens and public representatives, because if we have learned anything in the last number of years to which Deputy Brennan referred it is that the day of the free dinner or free anything else is gone. Every councillor who strikes a rate and every public representative who makes a political promise should be able at the same time to say precisely where that money is coming from. There is a great degree of bellyaching about this measure and I am astonished in some aspects at the outcry which has greeted it, especially from the Opposition and also from some organisations who claim to be representative of the community.

The Deputy was criticised on his own side of the House today.

When we speak about the measure before us, what are we talking about? Out of a total financial provision for local authorities this year of £1,350,000, this measure will facilitate the raising by local authorities of £21 million. From the hullabaloo from the Opposition, one would think that the roof was going to fall in in terms of local authority finances. It is only a drop in the ocean, although in a number of respects it is very welcome indeed. For the first time it will ensure a modicum of justice in relation to what people will pay for the services they use. In another respect, all it does is to rid certain parts of the country of an anomaly, because there are many people paying water rates already. Speaking for an area that has not paid water rates, I am quite happy that the citizenry will pay for the service they obtain. That is the principle I was brought up with and I believe it is good for the community in general. We should pay for what we get rather than assuming that somewhere there is a Government, a local authority or somebody else who pays. This Government are giving testimony to the fact that nobody else will pay our way and that the profligacy and the waste of the last four-and-a-half years have to be faced up to.

The reason this measure is before us is that when we all agreed to the abolition of domestic rates, and most of us supported the abolition of car tax and other measures, none of us had the courage to speak about the alternative sources of revenue. Now we are beginning to nibble back on what was a cowardly dereliction of responsibility by this House. I hope the lesson we learned during those years will not be lost on us: that we should not buy temporary political popularity at the cost of future generations. This is a small measure which will give local authorities some responsibility for the sums they will have to raise and should afford them a serious opportunity for debate and discussion on options and alternatives. It will force a council, or a sub-committee of a council, to say, if they only have a limited amount of money for a service, that they will either have to go without or raise local charges.

That is not what is happening in the Bill.

The Bill, with specific reference to the interjection, allows for local authorities to have flexibility on how they will raise these charges. The manager's role in all this has in most cases been to act in very close parallel, if not in unison, with the elected representatives. Pending what I hope will be significant changes ultimately in relation to the powers and functions of elected members of local authorities, the measure before us is the appropriate one.

I look forward to the day when elected representatives will be able to assume more control and responsibility, perhaps eventually extending into this area. But this is not the day on which that should happen because the councillors are not equipped at present to assume such responsibilities. Pending an overhaul and a fundamental reorganisation of local government, any Member of this House who suggests otherwise is being a little dishonest.

That is an extraordinary allegation against Members of this House.

Deputy Molloy spoke this morning and he was not interrupted.

The Deputy said earlier on that he did not wish to score political points, but he and his colleagues have done nothing else all day. This was a Fianna Fáil measure, a Fianna Fáil Bill and a Fianna Gael deficit.

I will prove to the Deputy in a moment that that is the case.

How is that our Bill?

Deputy Keating must be allowed to make his speech. This is ridiculous.

He must tell the truth.

The truth hurts, but if the Deputy listens quietly he will learn something. In specific reference to the last question, the truth is that it was the last Government which secured enactment of the legislation under which the planning charges have been introduced. The budgetary decisions of the Deputy's Government relating to local authority finances included a specific provision, in addition, for major increases in charges for other services and for a new water charge for domestic use of water in urban areas. That was the Deputy's Government. The additional charges envisaged were calculated to raise £55 million. Even then, on the previous Government's calculations and allowing for the laissez faire approach which they regularly adopted to such calculations, there would have been a shortfall of at least £19 million in the local authority finances for the current year. In fact, the deficiency would have been about £40 million. Both the record and the Opposition are silent——

This is all hypothetical.

——on how this massive gap in the provision must be made good or whether, indeed, it was the intention that local authority financing should be allowed to slide into a completely disastrous condition, a condition in which there would have been a broad spread cutback in services and associated employment. If the £40 million deficiency, which is unarguable, in the provision must be made up through local charges, I cannot imagine what the Opposition would now be saying when what we are trying to do is raise a little over half of that and we have a sustained, unremitting and obstructive opposition and hostility to the measure. That is the position which this Government inherited.

That is no use. What matters is that £65 million must be raised.

If the Deputies cannot restrain themselves, they should leave the House.

This Government made good the shortfall primarily by adding £31.5 million to the previous provision for rates support grants. That, too, is undeniable, despite the well nigh impossible budgetary position and general economic difficulties which all of us will agree, even the Opposition, that this Government inherited. This means, obviously, that much less revenue has to be raised on this measure than would otherwise have to be raised.

The previous Government's decisions and intentions — and I did not intend to go into this in such detail but I have been provoked — were entirely in line with their stated philosophy regarding local charges with which, incidentally, I am not in principle in disagreement. All I disagree with is people who change their tune fundamentally because they change their side of the House. We all allow for a little degree of politicking on these occasions, but a total and fundamental change of heart in four months is too much to accept, even from an Opposition which have in their time done some extraordinary somersaults. That philosophy was set out as far back as 1972 in a White Paper on local authority finances with which Deputy Molloy is very familiar indeed. It provided that the maximum amount of revenue should be raised by local authorities from charges for services and proposed that a general power to impose charges for services should be conferred on local authorities. That was the Fianna Fáil Government's White Paper of 1972.

To supplement existing revenue sources.

These intentions were further signalled and developed in a speech——

Deputy Keating without interruption, please.

——which Deputy Burke made, as Minister, to local authority managers in January 1981, continuing the trend enunciated in 1972 and by the Planning and Development Act of 1982 which is the basis for the planning charges — all of these measures emanating from the far side of the House. More recently, a document which is called — and the Deputies will all remember this —The Way Forward provided for “realistic charges” to be imposed for use of sanitary services “in the context of legislation to empower local authorities to charge for services generally”. In other words, I ask the Opposition can they deny that they proposed to introduce legislation to empower local authorities to make local charges? The answer must be that they cannot so deny, because it is on the record in The Way Forward.

Not to replace existing sources of revenue.

I could go on in this vein, but it is not a form of diatribe in which I freely indulge. However, one is a little annoyed at seeing the truth stood on its head. I hope I have indicated to Deputy Molloy, who prompted that type of response, that the known and published intentions of his Government in regard to the development of charges for local services give the lie completely to the line which has been adopted in a number of Opposition contributions — not all, but some — to the debate on this Bill.

Deputy Molloy mentioned that one of the reasons for controlling rate poundage levels which his party have operated since 1978 was to protect the commercial and industrial ratepayers from maverick local authorities. Apart from the fact that this does not say a great deal for the local authorities or their members whom Deputy Molloy appears to be championing, we all know that the real reason — and I can say this as somebody who suffered the discomfort of being on a local authority where this applied — for limiting the rate poundage increases under the 1978 system was the need to limit the demands on the Exchequer.

I have confidence in local authorities. They are doing a good job and need more assistance. They are willing to accept greater responsibility, greater fiscal autonomy and greater sensitivity about the manner in which they will now be afforded the opportunity of raising some moneys, a very small percentage, of the total budget with which they will be dealing this year. Nevertheless, it is a measure which affords them, for the first time, an opportunity of dealing realistically with the budget for which they actually have responsibility up to now in a nominal sense. This measure of local authority responsibility is borne out by the fact that in this year of 1983 not one of these local authorities struck a rate which any of us would accept as being in any way exorbitant.

I appeal to the Opposition in this respect that where they may very well have objections in matters of detail or in matters of significance in interpretation in aspects of the Bill, they should be a little more fulsome at least in expressing the truth that they, too, had they been in Government now, would be introducing a measure which they promised repeatedly since 1972 — that is, a Bill to allow local authorities to charge for local services. If at least we would clearly acknowledge that common ground, we would be doing this House some degree of service and not implicitly putting forward the kind of untruth which has in a sense lain behind what we are discussing. It is good for the local authorities that they be given this degree of responsibility and I hope that in the measure which I assume and expect the Government will announce in due course with regard to the reorganisation of local government generally, they will be given more authority, more autonomy and more responsibility, both fiscal and otherwise. All of us will agree on the need to decentralise, in so far as possible to give power back to the local area. If that can be achieved, then all the communities under the control of local authorities will benefit.

A number of submissions have been made on aspects of this measure. The Confederation of Irish Industry have expressed some unease about aspects of the Bill and how it will affect them. I assume that the Minister is conscious of their request and having read their submission, I see some strength in it. I must also say that there is a growing distaste in what one might loosely call the body politic at all the special pleading which has got us into the mess we are all in. Increasingly, I must admit to a certain unease about the very intense and self-centred lobbying which goes on regularly. It is almost impossible now to attend a meeting either in this House or in a local authority office, without a picket making a special pleading outside the gates.

Allowing for a certain degree of qualification in that respect, the concerns or anxieties of any group should be taken into account as far as possible by the Minister. I feel quite certain that he will give consideration to such requests.

In general, it is very hard to reconcile what I call, in a slightly jocose way, the bellyaching of the Opposition today — an Opposition who four months ago were in Government — with what we all know would have been the case——

The Deputy heard a lot of bellyaching from his own side all day.

Debate adjourned.
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