Vol. 426 No. 5
12 Mr. Gilmore asked the Minister for the Environment the Government's plans, if any, for funding local authorities; if the Government intends to introduce legislation to abolish service charges; and if he will make a statement on the matter.
17 Mr. Barry asked the Minister for the Environment if he has studied the Institute of Fiscal Studies report on the rate support grant distribution in Ireland which provided independent evidence that Cork Corporation does not receive its fair share of rate support grant and, at a minimum, is being deprived of over £1 million in rates support grant a year; and if he will make a statement on the matter.
139 Mr. Barry asked the Minister for the Environment if, in view of the fact that 80 per cent of Cork Corporation income is raised locally as against a norm of approximately 62 per cent in other local authorities, he proposes to equalise the situation; and if he will make a statement on the matter.
160 Mr. J. O'Keeffe asked the Minister for the Environment if he will revoke the 1983 legislation which gave power to levy local charges.
186 Mr. Allen asked the Minister for the Environment if he will fund local authorities in order that they can adequately maintain courthouses.
I propose to take Questions Nos. 12, 17, 139, 160 and 186 together.
It is at the absolute discretion of each local authority to decide whether charges for services in its area are to be levied and the scale of any such charges. I have no function in relation to the exercise of that discretion. I have no doubt, however, that the elected members, in considering their annual estimates of expenses, have careful regard to the needs of their area, the level and the range of services to be provided and all the sources of revenue, including charges, available to finance those services. Amendment of the Local Government (Financial Provisions) (No. 2) Act, 1983 is not necessary to allow elected members to decide not to levy charges.
Almost all local authorities currently charge for domestic services and have done so in successive years in order to provide and maintain the range of services which they consider appropriate. It is also apparent that the collection levels of those charges are well up to expectations in most cases, while persons on low incomes benefit from the comprehensive waiver schemes operated at local level. In these circumstances, I do not accept that the discretionary power of local authorities to levy charges should be abolished by legislation.
I am considering the findings of the report by the Institute of Fiscal Studies on rate support grant distribution. This report was published last May and sent to each local authority for their views. The report is complex and technical. It outlines equalisation models, based on various assumptions, in an effort to make it possible to compare the effects of a range of possible indicators for the distribution of the rate support grant by reference to needs and resources. The report is based on the use of statistical techniques and their application to selected criteria. A number of grant distribution options which were examined in the study suggest significant redistribution of the rate support grant between authorities—some would stand to gain as in the case of Cork Corporation and others stand to lose. The implications have to be carefully examined before deciding on the feasibility and desirability of adopting one or other of the options suggested by the IFS or any other option of this kind.
At this stage, observations have been received from most local authorities and these are being examined. Some local authorities favour the implementation of the recommendations in one form or other, while other local authorities are wholly opposed. Not surprisingly, this polarisation of views is related to the predicted outcome of a redistribution of the grant allocations as outlined in the report. Local authorities who might stand to have their grant allocations reduced have put forward a wide range of views on the perceived inadequacy of the report's findings and these views will have to be fully considered.
Many local authorities have suggested that the report's findings, which are based on analysis of the 1991 spending estimates, need to be tested on more than one year's spending patterns to establish conclusive indications of the extent of redistribution that might arise. I agree with this view and have asked my Department to run a further analysis of the distribution criteria by reference to the 1993 local authority estimates which have recently been adopted. In the meantime it is not proposed to formulate legislative or other proposals on matters affected by the report.
With regard to local service charges, does the Minister recall that on the last occasion this question was raised in this House it was asked by his Minister of State, who found that kind of reply to be so unsatisfactory that he was asked to leave the House?
With regard to the funding of local authorities generally, will he clarify if the extent of Government thinking on the funding of local authorities is simply confined to the distribution of the inadequate overall rate support grant for local authorites? Has he any intention of making a statement or announcement on the overall question of the funding of local authorites, particularly with regard to the source of local authority funds and the amount of money that is available to local authorities?
I find Deputy Gilmore's question quite extraordinary. I am replying to specific questions. The question was if I had considered the fiscal report. If the Deputy has a specific question in relation to overall funding I will deal with that as well but please do not come into this House making an accusation about an answer which is directly in response——
It has been around for years.
——to questions on a matter as complex as that.
The Minister is making a liar out of his Minister of State.
Solutions to problems, not answers to questions.
Not even a blush.
I am calling Deputy O'Keeffe.
The reason I put down a question on this subject is that I came across a specific commitment given by Fianna Fáil to revoke the 1983 legislation which gave power to levy local charges. In the light of the Minister's reply, is he saying that commitment was not given in good faith and will not be implemented?
Deputy O'Keeffe's question ignores what has been happening since 1986 following on the 1983 local government Bill, in relation to the introduction of service charges. It also ignores the fact that in the county health districts——
It was signed by Paddy Lalor in 1987.
——the question of raising revenue for local authorities by service charges was always part of the system. Many counties levied service charges for many years. It now raises £36 million——
Paddy Lalor said it clearly——
Is the Deputy saying to cut it out and replace it in some other way?
The Minister said that.
Order, please,
The Fianna Fáil director of elections——
There has been a lot of water under the bridge.
Order.
In relation to local charges, Fianna Fáil is committed to the revocation of the 1983 legislation which gave power to levy charges.
This is quite out of order at Question Time.
They stated, "It is our intention in Government that local authorities..."——
Quoting at Question Time is not in order.
——"the central Exchequer which will be sufficient to provide for a satisfactory level of necessary services." Paddy Lalor in February 1987——
We are talking about the future over here.
You are the new type Fianna Fáil now.
Would it not be reasonable to expect that the Government would be committed to providing adequate funding for local authorities to allow service charges to be abolished considering that the Government now has a number of Ministers who wanted to abolish service charges when they were members of local authorities, including Deputy M. D. Higgins?
Service charges are an integral part of funds raised by the elected representatives, who have a choice as to whether they raise these funds in this way or another way.
Give us enough money to run the counties.
Deputies opposite vote for the charges in the councils.
The vast majority of local authorities abide by the scheme.
They vote for them every time in Kildare and in Cork as well.
