Seanad Éireann díospóireacht -
Thursday, 14 Nov 2013

Vol. 227 No. 9

Adjournment Matters

Harbours and Piers Development

Senator David Cullinane

I welcome the Minister of State, Deputy Tom Hayes, and thank him for taking this Adjournment matter. I have tabled a number of matters on this issue in recent years and it is important to get an update from the Department on the current position. The Minister of State will know there is a need to dredge the harbour at Dunmore East. It is accepted this needs to happen because the lack of dredging restricts the ability of ships to berth at Dunmore East, which causes problems. The Department has recognised the need, which is important. Many vessels can only land at the harbour at high tide due to the build-up of silt, which restricts the type of vessels that can land. Given that Dunmore East is a fishing village and a harbour that needs a turnover of vessels, I believe the Minister of State will accept this is a situation that would cause concern. As it is also the case that a number of the larger vessels are unable to berth at low tide, they are stuck off the harbour for a couple of hours, waiting for the tide to rise before they can come. This causes concern for a number of different reasons, including increased costs. In addition, if there was a medical emergency, the boats need to get in and anything that delays them and keeps them out at sea for hours on end is not good. I also understand that, at times, there is a difficulty with the lifeboat being able to get out of the harbour at low tide, which is a further concern.

It is important that the Minister of State sets out the Government's priority. I know the Department has invested in the harbour in the past few years, which is welcome.

The last time I raised the issue, the Department said it had commissioned a report to examine the cost involved. As there is tributyltin, TBT, in the sediment, there will be an increased cost in disposing of dredged material, and I accept that its disposal will incur a cost. On the last occasion on which I met the Minister he confirmed that the engineering division of his Department had engaged consultants to examine and report on a number of alternative options in terms of the structuring of the works and the outlay involved. I wonder if the Minister of State is in a position to update us on the matter. Also, I ask him to clarify what the Governments intends to do for the area.

Minister of State at the Department of Agriculture, Food and the Marine (Deputy Tom Hayes)

I thank the Senator for giving me an opportunity to clarify the Department's position on the harbour.

The harbour at Dunmore East is one of the six designated fishery harbour centres that are owned by the State and managed and maintained by my Department. Their primary purpose is to provide facilities and services for the fishing industry and fisheries-related activities. Capital funding is made available on an annual basis by my Department to the fishery harbour centres, including Dunmore East, via the fishery harbour and coastal infrastructure capital development programme.

I am happy to advise that my Department has during the years continued to support the development of Dunmore East fishery harbour centre and provided significant funding for maintenance, development and upgrading works each year. Approximately €4 million in capital expenditure under the programme has been invested in Dunmore East Harbour from 2007 to 2012. In 2013, €827,000 was approved under the programme. The expenditure is in recognition of the valuable contribution the harbour makes not only to the fishing industry but also to the local community, through the support the harbour infrastructure provides to the development of the tourism industry and the local economy generally.

Dunmore East fishery harbour centre provides a dedicated and essential service to the fishing fleet. Both local and visiting fishing vessels, including vessels of significant dimensions, are currently availing of the harbour facilities at Dunmore East. However, larger vessels have difficulties accessing the harbour when laden with fish. Due to the accumulation of silt in the harbour there are only two suitable berths that have sufficient depth to cater for them when unloading.

From a general perspective, investment in Dunmore East fishery harbour centre in recent years is bearing fruit and the data provided to me by the Sea Fisheries Protection Authority indicates a year-on-year increase in fish landings in recent years.

The need for dredging works at the harbour has been recognised by my Department. It is acknowledged that further commercial development of the harbour, particularly to attract increased landings from fishing vessels, is and will remain restricted until the present situation with accumulated silt is resolved. The silting of the harbour has occurred gradually over time. Reports commissioned indicate that 80% of the harbour sediment contains TBT. Unfortunately, the costs associated with the disposal of dredge spoil containing TBT are significantly higher than for uncontaminated material. The most recent estimates for dredging the harbour and disposing of the dredge spoil material in an appropriate manner are estimated to be in the region of €4 million, subject to a tendering process. This represents a significant expenditure in the current economic environment. Any decisions on progressing works will be taken in the context of available Exchequer funding and other national priorities.

My Department has engaged consultants to examine and report on a number of alternative options in terms of the structuring of the necessary works and the potential expenditures involved. On 13 March 2013 the consultants provided the Department with their report. My officials have examined the report in detail to determine the most appropriate approaches to the project. Final decisions will be taken in light of the capital budget for 2014 and having consideration of the best strategic use of those funds nationally.

In the meantime, my Department will continue to invest in the Dunmore East fishery harbour centre facilities. More than €800,000 was allocated under the 2013 capital programme, a large proportion of which was spent on the much-needed slipway extension and widening that is now substantially complete. The project is an indication of the importance the Government places on developing Dunmore East fishery harbour centre. When the project has been completed, harbour users will have a fit-for-purpose facility that is required to provide for the increased level of fishing and leisure activities in the harbour.

I am cognisant of the need to be kept fully aware of the requirements of harbour users at Dunmore East fishery harbour centre on an ongoing basis. My Department's officials regularly host a harbour users' forum and meet local stakeholders and harbour users. The forum provides a platform for harbour users to air their views. It gives my officials an opportunity to hear at first hand the concerns and suggestions of people using the harbour facilities.

To conclude, Dunmore East fishery harbour centre will continue to be important in the consideration, preparation and roll-out of future fishery harbour and coastal infrastructure development programmes. Funds, subject to budgetary constraints, will continue to be made available for necessary maintenance and improvement of the facilities in Dunmore East and for the betterment of the port, its users, and the local economy.

Senator David Cullinane

I thank the Minister of State for his reply. It is welcome that €800,000 was made available under the capital programme to extend and widen the slipway. The real issue is the €4 million necessary to dredge the harbour and dispose of the spoil material. I accept that the project must be conducted in an appropriate manner due to the presence of TBT.

The Minister of State acknowledged that there is a difficulty with the port's activity because it has been hampered by the need to dredge. Perhaps today is a good day to ask for €4 million. The funding would benefit the economy in two ways. First, there would be increased tourism, leading to greater numbers of people using pleasure crafts and so on. Second, a greater number of fishing vessels would use the harbour. Both improvements would mean that State would get back its €4 million investment very quickly. I appeal to the Minister to make the money available because the harbour at Dunmore and the wider economy will benefit from the investment.

Deputy Tom Hayes

The Government is committed to providing the funding as soon as it has the money. He has made a good case for the project and officials in my Department will continue to monitor same. I have no doubt that the case made by the Senator and others will be successful. I shall endeavour to help the project in any way I can, within the Department, to make sure the project succeeds. Obviously an investment would be money well spent. I know the area and understand how the harbour will benefit. The Senator has my full support in securing funding. I have no doubt, in the current climate and as we leave our economic difficulties behind, that money will become available. Stand-alone projects such as this one which can create money for a local community and area need to be supported. I give the Senator my commitment that my Department will provide support at all times.

Property Taxation Application

Senator Deirdre Clune

I welcome the Minister of State at the Department of Finance, Deputy Brian Hayes. I want to discuss the local property tax. People who live in properties or estates must pay a management fee and the local property tax. The issue of paying twice for local services has been raised with me on at least three occasions in the past few weeks.

I wish to point out - I am sure the Minister of State will do the same - that anyone who lives in an apartment complex pays management fees on the entire structure - that is, for internal lighting, lifts and so on, as well as for the external space, which has roads and lighting. Inhabitants must make a contribution and pay a maintenance fee. In some housing estates there is a combination of apartments and houses but all of the inhabitants must pay a management fee.

I am aware the local property tax is deemed to go towards local services which may not be in the immediate vicinity of the development but could be in the greater local area. It raises the question of the need for local authorities to take in charge local housing estates as many of them are not taken in charge. If they are paying management fees do the Minister for the Environment, Community and Local Government and the Minister for Finance have plans to ensure that councils can move forward in taking in charge these housing estates because the residents consider that as they are paying the local property tax they are at a disadvantage compared to their neighbours? That is an issue that should be progressed and it should be established that there is a norm for everybody. For too long I have witnessed in my area councils not availing of the opportunity to take in charge housing estates, perhaps, because the developer did not propose it but they should be more proactive in that area. The roads and the internal services in those housing estates can deteriorate and a point is reached where the taxpayer cannot take it on. It becomes a vicious circle. To answer those people, do we have a plan and, if so, where is it, given that they consider they are paying twice for local services and that they are a disadvantage vis-à-vis their neighbours?

Minister of State at the Department of Finance (Deputy Brian Hayes)

I thank the Senator for raising this important matter and highlighting an issue that is of concern not only in her area but in my area because of the proliferation and number of housing units where a management company is already in place.

The introduction of a property tax is part of a broader approach to the taxation of property which aims to replace some of the revenue raised from transaction based taxes, which have proven to be an unstable source of Government revenue, with an annual recurring property tax, which international experience has shown to be a more stable source of funding. The local property tax was designed on the principles of equity, transparency and simplicity. Under the local property tax, a liability applies to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept to a minimum for those liable persons who do not qualify for an exemption.

There is no specific relief from the local property tax for the payment of management fees, and there are no plans to introduce such a relief. Issues such as ability to pay are addressed through a system of deferrals, subject to meeting the qualifying conditions. Those who are liable for management fees to property management companies may be exempt or eligible for relief from the local property tax for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation.

Generally, properties in managed estates, to which such fees apply, would have been purchased by their owners in the knowledge that they would be taking on commitments to partake in and to fund the management of the estate, and that it was the intention that many such estates would not be taken in charge by local authorities, nor would it be appropriate for local authorities to do so. Management fees in these estates may, in some instances, include services such as refuse collection, maintenance of common areas and a sinking fund for certain repairs to the buildings. These are costs which homeowners in many other developments would have to fund themselves for their own properties.

In certain circumstances private estates will be taken in charge by local authorities in accordance with the relevant section of the Planning and Development Act 2000. This is a matter for the Minister for the Environment, Community and Local Government and the relevant local authorities. For those in unfinished estates, the Finance (Local Property Tax) Act 2012, as amended, provides that a residential property shall be exempt from the local property tax where it is situated in an unfinished housing estate that is specified in a list prescribed by the Minister for the Environment, Community and Local Government for the purposes of the Act.

The Minister for the Environment, Community and Local Government has prescribed and published this list, which is set out in the Schedule to the Finance (Local Property Tax) Regulations 2013 and was compiled by local authorities utilising the categorisation employed for the purposes of the national housing survey 2012.

For purposes of preparing the final list of developments to which the exemption from the local property tax would apply, local authorities were asked by the Department of the Environment, Community and Local Government to confirm or update the then existing list as appropriate. The local property tax is a self-assessment tax based on the market value of the property. In the first instance it will be a matter for the liable person to calculate the tax due. Liability to management fees and the scale of the fees due would be one of the factors that a property owner would take into account in valuing the property.

The introduction of the local property tax provides an opportunity for political reform at local government level. The local property tax will provide a stable funding base for local authorities and it can be altered into the future. This is a good reform in local democracy for the first time whereby funds will be ring-fenced for local authorities. We have not had that since the abolition of rates in 1977. Revenue from the local property tax will accrue to local authorities and will support the provision of local services.

Local authorities provide a broad range of services in the public realm the proper functioning of which are important for the wellbeing of every community and household. These include fire and emergency services, road maintenance and cleaning, street lighting, spatial and development planning etc. The net issue is that the local property tax applies to everybody no matter where one lives. Irrespective of the position in which some people find themselves in owning property in managed estates it is not envisaged that there would be a special category or a special exemption for them. That is not the position of the Government.

Senator Deirdre Clune

I had anticipated that type of response. The Minister of State said it was the intention that many such estates would not be taken in charge nor would it be appropriate for local authorities to do so. It is probable that the residents of the estates I have in mind did not know they would not be taken in charge. There is another category of estates where the process of taking in charge has not been addressed or is on the long finger. I know the Minister of State said it is a matter for the Minister for the Environment, Community and Local Government. This is an area that needs to be tidied up and a statement made in terms of progressing the issue.

Deputy Brian Hayes

Obviously, this is an issue for the Minister for the Environment, Community and Local Government. For people living in apartments and flats, their position is entirely different from that of those living in a housing estate where one can walk out the front door and on to a pavement and public access. In the boom times, local authorities used this as a cash cow by which to levy additional funds from those communities. Of course, those people obtain certain services by paying the maintenance fees. I think there are two different situations and we need to look at this issue very closely. Ultimately, some new policy position has to be formed for people living in housing estates, as I do and I do not pay management fees. Why should one pay management fees in a housing estate that happened to be built at the wrong time? I do not think that applies to apartments because they are separate builds-----

Senator Deirdre Clune

Not apartments but generally-----

Deputy Brian Hayes

-----with common stairwells and sinking funds and so on.

Senator Deirdre Clune

I accept all that.

Deputy Brian Hayes

There are several arguments. If we could make some progress in this area it would be very useful.

Senator Deirdre Clune

I thank the Minister of State.

Local Government Elections

Senator Mark Daly

I thank the Minister of State for taking the time to come to the House to address the concept of retaining the office of mayor of Killarney. He will be aware that in Waterford where the city council is merging with the county a mayor will still be elected in the local electoral area. Will Killarney and elsewhere which will lose their town councils be allowed to have an election among local authority members in their local electoral areas, where there are currently mayors, following the change in legislation?

Deputy Brian Hayes

I thank the Senator for raising this matter. I apologise that the Minister for the Environment, Community and Local Government, Deputy Phil Hogan, cannot take this Adjournment matter. As Members are aware, the Government's action programme for effective local government published in October 2012 sets out Government policy in this area.

It is recognised that towns have a strong affinity with the ceremonial title of mayor. The Government is also strongly of the view, however, that there is a need to protect and enhance the status of the title of mayor. In this context, it is the Government's view that, for example, the extension of the mayoral title to counties is not appropriate and does not conform to general, though not I concede universal, practice internationally, whereby the title of mayor applies mainly to certain urban areas. Accordingly, the Government decided, in the context of the action programme for effective local government, to reserve the title to cities and municipal towns containing former borough councils or towns with a population of at least 20,000 people. Local authorities accorded specific status under current legislation such as borough councils and cities, will retain the option of using the title of mayor. This decision is reflected in the provisions contained in the Local Government Bill 2013 which is on Second Stage in the Dáil.

The Bill provides that the default position is for the chair of the local authority or municipal district to be titled "Cathaoirleach", with the option for the elected members to adopt the title of mayor in the case of cities, the merging city and county authorities in Limerick and Waterford and municipal districts containing former boroughs or towns of 20,000 or more population. I am satisfied that the Bill's provisions reflect appropriately the status and relevant application of the mayoral title. The population threshold of 20,000 is reasonable and reflects no downgrading of towns such as Killarney but rather the need to enhance the status of the mayoral title by confining its application to districts containing large centres of population. If the Minister was here, he would mention international experience in this area and the Government's new agenda, in terms of rationalising local authorities as a means of enhancing local government and ensuring we get stronger local government in the future by making it more streamlined and effective.

Senator Mark Daly

I thank the Minister of State for providing the Minister's response which I will bring it back to the people of Killarney. I agree that we do not need to read through the full response.

The Seanad adjourned at 2.45 p.m. until 2.30 p.m. on Tuesday, 19 November 2013.