Call for changes in funding local government

Local government will not survive beyond 10 years without radical change in funding, a senior local government representative…

Local government will not survive beyond 10 years without radical change in funding, a senior local government representative warned in Galway yesterday.

However, no party had the political will to ensure they did receive adequate financial support, Cllr Michael Lawlor, chairman of the Local Authority Members' Association and a former chair of Wicklow County Council, said. Councillors who did not have the courage to impose new charges would have to be prepared to make unpopular decisions if the authorities on which they serve are to have any future, he told a conference hosted by Galway Chamber of Commerce.

This year marked the 25th anniversary of the abolition of domestic rates and local authorities were experiencing serious financial difficulty, he said. They would not last another 10 years, if they did not live up to public expectations.

"In my view the dual mandate has been a big factor in ensuring they are not properly funded as members attempt to carry out what they believe to be their 'national' duties in a local forum," Cllr Lawlor added.

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He said he saw nothing wrong with the concept of service charges. He was also critical of the enormous influence exerted by small, special interest groups on the thought processes of councillors.

"Local government may well disappear because of a lack of will locally and nationally, because of a lack of decision-making and a lack of guts.

"This will have a devastating effect on our society," he warned.

The economist, Mr Jim Power, said that funding of local authorities would still represent a serious challenge in the years ahead, given the modest recovery in the Irish economy.

Further significant increases in service charges would be the most likely way of making up the shortfall, Mr Power, chief economist with Friends First, said.

"Modernisation of the public service is not going to happen," Mr Power told the conference, adding that in his view social partnership was a waste of time. Many employers would be unable to, or plead inability to pay, the proposed 7 per cent private sector pay deal and so it was largely irrelevant.

"The Government will pay benchmarking and get nothing in return - yet the economy cannot afford it," Mr Power added.

Earlier this week, Fianna Fáil members of Waterford City Council split over the council's book of estimates for 2003, which was passed by 10 votes to five.

Mr Tom Murphy and Mr Michael Ivory joined the council's three Workers Party members in voting against the estimates because of their objections to an increase of almost 100 per cent in wheelie bin charges.

Party colleagues Ms Mary Roche and Mr Sean Dower joined Fine Gael, Progressive Democrat, Labour and Independent councillors in supporting the estimates.

The council's budget plans will see the cost of each wheelie bin lift increase from €2.54 to €5 and hourly disc parking costs double to €1.20. There will also be a 9 per cent increase in commercial rates, a move opposed by Waterford Chamber of Commerce.

Lorna Siggins

Lorna Siggins

Lorna Siggins is the former western and marine correspondent of The Irish Times