Thank you, Chairman. I am very pleased to have been invited to attend a meeting of the Joint Committee on the Environment, Heritage and Local Government to discuss a report I published recently, concerning the administration by local authorities throughout the country of waivers from charges for waste collection. I am particularly pleased to be in Leinster House today while the Ombudsman (Amendment) Bill 2008 is on Second Stage.
In October this year, I published a systemic investigation report into the operation by local authorities of waiver schemes for refuse collection charges. The investigation was prompted by complaints to my office by a public representative on behalf of several low income householders who had been refused waivers by Waterford County Council. Having considered the complaints and the issues raised by the complainants, together with the views of the local authority concerned, I formed the view that this was not likely to be a matter of concern to that local authority alone, but to other local authorities as well. Therefore, I decided to carry out a general investigation into the operation of waiver schemes in the local authorities.
The key aims of my investigation were to establish the terms and qualifying criteria of the waiver schemes administered by local authorities for refuse charges, and to consider any adverse effects on low income households as a result of the failure of local authorities to grant waivers in deserving cases. A representative sample of 23 local authorities were surveyed by way of a questionnaire, and a number of interested stakeholders including the Department of the Environment, Heritage and Local Government, the Department of Social and Family Affairs, the Society of St. Vincent de Paul and the Irish Senior Citizens Parliament were invited to make submissions to my office on the issue.
Traditionally, local authorities carried out waste collection services throughout the country and administered waiver schemes for the benefit of those who could not afford to pay their charges. This still remains the situation in a few areas, but in most areas, the local authority and private operators provide the service. In a growing number of areas, the service is provided exclusively by private operators. Two issues arose in this context, namely, where the service is provided by or on behalf of local authorities, whether the waiver schemes in operation are administered fairly, and whether local authorities are acting properly towards those households that cannot afford to pay the waste collection charges of private operators.
The results of the survey indicate an unacceptable level of inconsistency between waiver schemes administered by local authorities. In one county alone, three different waiver schemes are in operation, each with different qualifying criteria. This level of inconsistency is not in keeping with the highest standards of public administration. The results of the survey also give me cause for concern about the extent to which sections of the population are effectively excluded from access to waiver systems that are designed to provide relief for low-income households and that, depending on where one lives, there may or may not be access to a waiver scheme. The submissions I received from the Society of St. Vincent de Paul and the Senior Citizens Parliament also clearly highlight the impact of waste charges on the poorer sections of our community and the inadequacies of existing waiver schemes. This is a concern I share following the results of my survey.
Where the waste collection service is fully privatised, it would seem that, with a few exceptions, the local authorities surveyed take the view that their obligations towards low-income households are somehow diminished or non-existent by virtue of the involvement of a private operator. However, many of these households are tenants of the local authority — a proportion of whom avail of low rents under the differential rent scheme, in recognition of low household income. I find it difficult to reconcile the existence of a strong and long-standing social obligation towards one public service, namely, the charge for social housing, with its almost complete absence in another area of public service provision, which is the charge for waste collection services.
It is clear that the intention of section 75 (3) of the Waste Management Act 1996, as amended, was that local authorities would have discretion to exercise a social obligation by providing relief in cases of individual personal hardship by way of a waiver scheme. It is also clear that they have the authority to do so where the waste collection service is provided directly by the local authority itself, or where the service is provided under contract by a private operator on behalf of the local authority concerned. However, the Act is silent on the subject of the provision of a waiver to customers of private operators where the service has been fully privatised, as opposed to being operated by a private operator under contract to the local authority. Local authorities probably have some scope to provide a waiver to clients of fully privatised services by entering into a local arrangement with the private service provider for the collection of waste, although whether all local authorities agree that they have such a power is open to question.
Limerick city and county councils, having privatised the waste collection service, have found a solution by entering into local arrangements with the private waste companies operating in the area. These arrangements authorise the private operator to collect waste on behalf of the council from certain low-income households identified by the council. This then allows the council to waive or subsidise all or part of the waste collection charges to those households.
Some local authorities have argued that they lack the resources required to provide a waiver scheme that would be equitable to all low-income households, that the provision of a waiver scheme is a very heavy cost on the local authority and that there are administrative difficulties involved. I do not accept the validity of these arguments for the following reasons. Some local authorities have found a way to provide a reasonable service, and while others may not provide the level or standard of service to which they would aspire, they are nonetheless providing a service for the most needy cases and the cost does not seem to be prohibitive.
Some waiver schemes operate in a discriminatory fashion, as demonstrated in Complaints A and B outlined in the report. This means that in the case of two households on the same income from the same source, one would qualify for a waiver because it is a means-tested payment, while the other would not. One local authority has claimed that it would require an excessive level of resources to conduct a means test for all waiver applicants. I have difficulty in accepting this argument, particularly when the survey results indicate that 48% of the local authorities surveyed have found a way to carry out some form of means-testing.
I found that there is a multiplicity and diversity of schemes in operation in local authorities and in some cases, there is no waiver scheme at all. Overall, I concluded that the system is a shambles. I can illustrate this by using some concrete examples. In 2006, a total of seven local authorities had no waiver system at all in place, on the grounds that the service is provided exclusively by private operators. Others only give waivers for refuse not collected by private operators. One county has three different waiver schemes in place, while the average value of an annual waiver varied from €40 to €357.
The report highlights a significant social policy deficit, with local authorities increasingly being driven by commercial considerations, while the poorest and most vulnerable in society suffer. While local authorities may outsource their waste collection service, they cannot outsource their social obligations also. Despite the legislative silence on the matter of private operators and waivers, some local authorities have taken steps to provide relief for qualifying waiver applicants. Where the service has been privatised, all local authorities should emulate this practice by introducing a scheme or reviewing their existing scheme, as appropriate, to ensure that it provides relief in cases of hardship. However, I also recognise that the longer term solution lies mainly in the hands of the Department. There are unresolved issues relating to the regulation of the waste management sector which include the matter of the social obligations of local authorities regarding waivers. In the shorter term there is scope for the Department to provide guidance for local authorities on the administration of waste waiver schemes.
The primary concern of my investigation was to highlight unfairness in the administration of waste waiver schemes and focus particular attention on how severe an impact the system had on people. In my report I have set out a series of recommendations that should be implemented as a matter of priority by local authorities and the Department to address the problems encountered. My report recommends that each local authority take immediate steps to ensure it has in place a waiver scheme that caters for hardship cases in a fair, equitable and consistent manner and review its position on clients of private operators to ensure hardship cases are provided with relief. I have asked that each local authority proceed immediately with implementation of these recommendations.
Given the responsibilities of the Department regarding local government matters, I have recommended that it take a lead role in helping and encouraging local authorities by carrying out a review of the administrative inconsistencies and anomalies in waste waiver schemes; devising guidelines for local authorities that will assist them in achieving fairness, equity and consistency in the administration of waiver schemes; addressing the legal position on the provision of waiver schemes where the waste collection service has been fully privatised; and expediting consideration of the regulation of the waste management sector, with particular reference to the needs of low-income households with a view to ensuring all households availing of such services, from whatever source, are facilitated with a waiver scheme.
I have indicated that I intend to ask each local authority to furnish me with a progress report on the implementation of my recommendations 12 months after the date of publication of the report. The Department will be asked to report to my office, at six-monthly intervals, on its progress in implementing my recommendations. Since its publication I have written to all county and city managers and the Secretary General of the Department to draw their attention to the report and my recommendations. I have also sought their views and, in particular, an undertaking that they will proceed to implement my recommendations to ensure all local authorities have in place a waiver scheme that caters for hardship cases in a manner that is fair and equitable.