I wish to participate in this debate for several reasons. I welcome the Bill and I am glad to say that when I had responsibility in this area in the 1980s it was decided to reorganise local authorities. The earlier part of the reorganisation took place in various towns around the country but the proposals which are now before us were also included in that reorganisation.
The initiative for that reorganisation emanated mainly from those who were demanding more local democracy in the various towns in the county of Dublin which were only represented by county council members on Dublin County Council. We all recall the strong demands from people living in areas like Tallaght which had a population, as we were told on that occasion, larger than the city of Limerick. They were demanding their own local authority where their voices could be heard.
The reorganisation of Dublin County Council, which now has more than 75 members, required that something be done about the unwieldy council which presently represents that area. Dividing the council into three local councils would approximate to the numbers which represent county councils in rural constituencies and counties. Therefore, it would appear that the demand is not as great now, judging by the comments of some of the local authority members in this county and city.
The Taoiseach at the time, the former Deputy, Garret FitzGerald, was very much involved in the drawing up of the constituencies and I hope that the members of his party will recall that he had quite a large input into decisions concerning the size of the various boundaries, including streams and roads etc., which should be included in the plan. Indeed, he was very conscious of the names that should be given to these new councils. At the time it was easy to come up with names such as Dún Laoghaire-Rathdown and Fingal but I am unhappy with the name that is to be given to south-west Dublin. There are very obvious landmarks in that area after which that local authority could be named. I am sure it will be brought to a conclusion very shortly.
I have a particular interest in this debate since I represent County Wicklow which borders the Dublin County Council area. I am glad I also represent part of County Kildare, which abuts the western part of the functional area of one of the new local authorities to be established under the provisions of this Bill. Indeed, the decisions implicit in the provisions of this Bill do not stop at the borders of Dublin but will have an effect on a much larger area. They will have their effect on the counties surrounding Dublin. In my short contribution I shall be endeavouring to examine the effect that reorganisation can have on counties like mine and the part of Kildare I represent also.
For some time past there has been some controversy between the counties of Wicklow and Dublin with regard to the supply of water to Dublin from Wicklow and also from some parts of County Kildare. We know that the facilities created for the supply of water to Dublin were initiated by Dublin Corporation many decades ago and that the amount of water extracted from the Roundwood and Blessington reservoirs was very little in those earlier years, when the 1927 Act, I think it was, was enacted to flood the area around Blessington, creating a reservoir there. We know now that the volume of water being extracted from that area is huge. But it must be said that the rateable valuation of those reservoirs has barely kept pace with inflation. This means that the revenue yield to Wicklow County Council through the payment of rates, which is the only way that local authority can reap any return rather than any gallonage levy, is minimal. The result is that Wicklow County Council imposes practically the highest service charges in Leinster. I assume that once the estimates have been struck in the next week or two, some problems will arise in that respect. Assuming they are struck, thereafter water rates on each household in Wicklow will amount to £60. A person living in Blessington who had to pay that rate could see their neighbours in Brittas in County Dublin, a short distance away, not having to pay any water or service charge whatsoever. When the new structures have been put in place I predict there will be a demand for the raising of funds for that local authority, who will have to give consideration to whether they want to have service charges included.
In the general scheme of things I hope that my colleague, the Minister of State at the Department of the Environment, Deputy Stagg, will examine this unfair method of raising funds for local authorities through the imposition of such service charges. While those charges were introduced by another colleague of mine, the Tánaiste, in 1983 when I was responsible for the introduction of the appropriate Bill, they were meant to be additional funding for each local authority if that was their wish. It was left to each individual local authority to decide whether they wished to impose such service charges to fund necessary facilities in their respective areas. We know now that that additional funding has since disappeared. We are now aware that, with the limitation on rateable valuations and the reduction in the rates support grant, more and more counties are dependent on service charges.
This has led to an anomalous position. For example, in Dublin, where there is a huge commercial and industrial rate base, in that part of the county represented by these new local authorities, one can afford to impose no service charge or a very low level of service charge. In Wicklow the commercial and industrial rate base is very small, so that the amount raised by, say, a 1 per cent increase in rateable valuation will amount to approximately £35,000 compared with a yield in the region of £60,000 to £70,000 occasioned by a 1 per cent increase in Dublin.
Deputy Power, who spoke before me, mentioned the difficulties created for County Kildare where the local authority must provide facilities for the population overflow from Dublin, particularly the provision of housing, whether private or local authority, and where no rates are levied from which the local authority can fund amenities. Yet they must provide increased services for that overflow of population from the city and county of Dublin. This leads to increased demand for facilities and services generally, such as the provision of roads, public libraries, water services and so on. This means that the pressure on local authorities is much greater in counties adjoining Dublin city and county whereas the relevant rateable valuations for the purpose of collecting funding have not increased correspondingly.
The problems of local authorities will be reflected in the creation of these three new authorities in Dublin when there will be a variation in the level of rates between theirs and those being levied in other counties, rendering places either more or less attractive in which to build, create employment and so on. We in Wicklow County Council expect our rates to rise to practically the second highest nationally, or at least in the Leinster area, thereby rendering our county less attractive to commercial activity in that our commercial and industrial rates will have to be greatly increased because our county does not contain the large industrial complexes that contribute so much to rates in the Dublin area.
In County Wicklow we must also provide leisure facilities. It is the most beautiful county in Ireland and is located next to Dublin, from which thousands of people commute, particularly at weekends in the summer, and even throughout the year. This means we must provide and maintain those roads being used regularly at weekends, as well as providing toilets and other amenities for leisure purposes. This is becoming an ever increasing burden on our local rates.
When these three new local authorities have been established Wicklow County Council will certainly have to consult with them. For example, we have to provide car parks all over the county and maintain places of national interest like Glendalough in order to cater for the increased volume of traffic and commuters arriving there each weekend. There are places like Brittas Bay which attract many thousands of people in the summer. Many years ago we built a car park there funded jointly by Dublin Corporation and Wicklow County Council. That is one example of commendable co-operation; unfortunately, it has not been extended in any other area of our county.
In the future, with places of interest such as the interpretative centre at Luggala and attractions like those being created in Wicklow town, with the refurbishment of the jail and the interpretative centre there, there will be even more commuters from Dublin and other places at weekends. However, such commuters do not generate any real funds for the county since people usually bring along sandwiches and do not avail of our hotels for overnight stays. Nonetheless, there is a huge movement of traffic in and out of the county.
The creation of these three new local authorities will have quite an effect in that there will be enormous variations not only within County Dublin and Dublin Corporation but also within adjoining counties. It will be essential for the Department of the Environment to examine these effects, and not merely within County Dublin. We must remember it will take some time to resolve all of the problems of the transfer of assets between one local authority area and another, but their establishment will also create difficulties for neighbouring local authorities.
We must remember also the revaluations that take place every five years. For example, because Dublin consumers are not using the degree of power which was intended by the ESB when the Turlough Hill generating station was built, Wicklow County Council lose out. The Valuation Office have reduced the rateable valuation on the power station with the result that £116,000 less in rates is paid to Wicklow County Council. That is something over which Wicklow County Council cannot have control. I imagine there is not a great deal of control from Dublin either. The property was built in Wicklow for the balancing of ESB usage in the city of Dublin where the take-up is not what was expected. The ratepayers who have their businesses and their industrial activity in Wicklow are the people who will suffer as a result of the change. They will have to pay an additional 3.5 per cent increase in rates to make allowances for the reduction that the ESB will be granted from the Valuation Office. That will be a huge imposition: it will mean either cutting back on the marginal services in Wicklow or increasing service charges or rates inordinately on the people of Wicklow.
Apart from the impact the new councils in Dublin will have on the citizens of the city and county, this reorganisation will have its effect, too, on bordering counties such as Wicklow, Kildare and Meath. I hope the Minister will take note of whatever representations may be made to him in that regard from these other counties.
As I said at the outset I welcome the Bill because it brings local democracy nearer to many of the citizens of County Dublin. The views of local authorities adjoining Dublin County Council will have to be heeded when we highlight the difficulties a metropolis such as Dublin has on adjoining counties and the problems that are likely to arise from the reorganisation, and the division of assets.