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Hogan welcomes the most radical reform of local government in over 100 years

Published on Saturday, 31 May 2014

Hogan welcomes the most radical reform of local government in over 100 years


Mr Phil Hogan, T.D., Minister for the Environment, Community and Local Government, announced today (31 May 2014) the implementation of a range of reform to the local government system in Ireland.
“Tomorrow, 1 June 2014, marks the most far-reaching change in structures, functions, operational arrangements and governance in the Irish local government system since the current system came into being 115 years ago in 1899.  The changes that are being made are radical, but they are necessary to bring our local government system up to date and to provide the kind of service our citizens and communities deserve” the Minister said. 
The Action Programme for Effective Local Government, published in October 2012, and the Local Government Reform Act 2014 set out a realistic, measured, pathway towards an even wider role for local government in the future.  The streamlined structures, more sustainable funding base, and more efficient operational arrangements that are being implemented make this a realistic objective, which will be further underpinned by more effective governance arrangements and a more responsible leadership and oversight role for the elected councils.

“Of the many reforms that will come into effect on 1 June, the major structural reforms will be the most radical and visible”, Hogan said.  “From tomorrow the number of local authorities will reduce from 114 to 31, involving the merger of Limerick city and county councils, Waterford city and county councils and North and South Tipperary county councils, as well as the dissolution of the 80 town councils and other subsidiary bodies.  The 2014 local elections see 949 councillors elected across the country to the new structures, down from 1,627 outgoing councillors”, he added.  “These changes will eliminate duplication by ensuring more streamlined structures and the resources that were previously absorbed by these structures and processes will now be freed-up to improve front-line services and to enhance the quality of life in local communities”, Hogan said.

The replacement of the 80 town councils by municipal districts, in particular, will end a weak and unbalanced version of local democracy in which 46% of all councillors represented only 14% of the population and dealt with only 7% of local government activity. Anomalies such as residents inside town boundaries having two votes while the environs population, much larger in some cases, was not served by the town council, will cease.  “We now have a much more equitable system of representation within counties, with councillors representing and accountable to their communities at both the municipal district level and, county-wide, at council level”, Hogan pointed out.

The reformed local government system will benefit from a significant broadening of its functions.  Most notably, local government has been given a wider and clearer role in economic development. One element of this role already in place is the operation of Local Enterprise Offices as “one-stop-shops” for the micro-enterprise and small business sector.  In addition, local authorities will have a pro-active role in promoting economic development, focusing particularly on the strengths and opportunities in their areas and working closely with the development agencies, business and other relevant players.

In addition, local government is being given the scope to fulfil its potential on behalf of communities. The practice in recent decades of locating local and community development functions outside of local government is being redressed the work underway to better align the local government and local development sectors. This will be achieved through the establishment of Local Community Development Committees in each local authority area, to enhance strategic planning and coordination of local and community development programming and activity. “This new arrangement will build on the strengths and resources of both the community and local development sector and the local authorities to maximise the benefits for communities across the country”, Hogan emphasised.

New governance arrangements, also coming into effect from the first meetings of local authorities next Friday (6 June 2014), will give elected councils greater policy development powers and stronger oversight of the implementation of policy by the executive, which will be subject to more rigorous performance and reporting requirements. The position of the elected council relative to the executive is being rebalanced, including a new power for the council to approve the appointment of the chief executive, reinforcing the role of the members as the “Board of Directors” for their authority.  In addition, nearly 30 additional “reserved” functions are being assigned to the elected members rather than the executive, including those in the key areas of revenue raising, economic development and the role of the municipal districts.

The new municipal districts themselves will have an important role to play within the communities they serve and municipal district members’ devolved powers will include matters such as local area plans, bye-laws, and programmes of works in areas such as roads and housing.  These are matters that were, prior to 1 June, largely decided by the executive of the local authority, resulting in a significant enhancement of councillors’ powers under the reform programme.

The Minister also highlighted the role of the new councils elected on 23 May in ensuring that the reforms will bear fruit and deliver better service and quality for local communities.  “The statutory powers of elected members have been expanded under the new legislation and are set out clearly in the 2014 Reform Act. However, the success of the reform programme will depend critically on the calibre of the new councils and on their capacity to utilise these powers as effectively as possible.  A key element of the reform programme is therefore to ensure that councillors have the necessary training to ensure that they can fulfil their wider role.  In this regard, a tailored training programme for councillors will be available for the newly elected councils” the Minister said.  Induction training is being organised by the new Association of Irish Local Government (AILG) regionally for all elected members during June, and a further programme of training will be developed for implementation over the 5 year term of councillors. 

“I have also brought to an end the scandal of councillors travelling to a wide range of pointless and ineffective conferences.  The ceiling of €4,700 per annum per councillor for expenses for conferences, in place under the previous arrangements, is being reduced to €700 per annum.  Any further expenses claims for travel to events will have to be linked to purposeful training linked to elected members’ role as councillors”. Hogan announced.

Minister Hogan also placed limits on allowances that local authorities may pay to their Cathaoirligh and Mayors.  “The practice of local authorities setting the amount that may be paid to the Cathaoirleach, or Mayor or Lord Mayor, without limit will cease.  I am capping the amount that may be paid to the Cathaoirleach within a range of €20,000 to €50,000, depending on the size of the chamber, and setting a limit of one fifth of what is paid to the Cathaoirligh, Mayors and Lord Mayors to their deputies.  This is the first time any cap has been placed on these payments, and should generate savings of at least 30% in these payments, bringing them down from €1.44m to just under €1m.  I am also placing limits on what municipal district members may pay to their Chairs, with a limit of €6,000 for the generality of municipal districts, rising to no more than €18,000 for the Mayors of Waterford and Limerick Metropolitan Districts.  Deputy Mayors and Leas-Chathaoirligh in local government units below the level of the main local authority will not be paid any allowance for this post.  This could potentially see payments at municipal district level to Cathaoirligh and Mayors rise from the €630,000 currently paid to Cathaoirligh and Mayors, and their deputies in some cases, in the Borough and Town Councils now being abolished, to €690,000.  Overall, there should be savings of at least 22%”, Minister Hogan said.  He went on to stress “these are the upper limits on what may be paid – it is entirely a matter for elected members to pay less to their chairpersons, if they want to prioritise this money elsewhere”.

The Minister emphasised that the local government reforms are an essential step forward in the Government’s wider reform programme and said “while 1 June 2014 is an important milestone in the delivery of key reforms in local government, it is still an early step on our journey.  The shortcomings in our current system of local government have built up over a long period and it would be unrealistic to think that this situation can be turned around instantly. Previous failed reform proposals made that very mistake.  I will be introducing more reforms over the course of this year including the establishment of a National Oversight and Audit Commission for Local Government which will provide independent scrutiny of local government performance and in providing value for money for service delivery”, Hogan concluded.