FF would put aside a set percentage of income tax to fund local authorities

A SET percentage of income tax would be put aside to fund local authorities under proposals published by Fianna Fail yesterday.

They would have sole discretion on how it was spent, and would also receive a proportion of motor tax receipts to pay for non national roads.

Speaking at the announcement of the proposals, the party's environment spokesman, Mr Noel Dempsey, again firmly ruled out the reintroduction of water charges. Admitting that it was not a flexible starting point for discussions on a post election deal with the Progressive Democrats, he said: "We are not going back to water charges, end of story. The concept of direct local sources of finance for local authorities is now dead and buried."

Mr Dempsey's remarks brought a sharp response from the Minister for the Environment, Mr Howlin, who accused Fianna Fail of "dithering" on the service charges issue.

"Mr Dempsey is showing indecision of breathtaking proportions on this issue and appears to be trying to paper over the irreconcilable differences between FF and the PDs."

The Government, he said, had abolished service charges because its conviction was that in their present form they were more in the nature of a tax than a charge and could more readily be collected as such.

Mr Dempsey, speaking at a press conference in Dublin, said that under the Fianna Fail plan spending by local authorities would be scrutinised by intensive value for money audits. "Our system would reward local authorities which are efficient, effective and show that they can use their money well."

The current lack of local discretion over expenditure was the core of the malaise that currently afflicted local government. "Councillors with little or no say about where or how money is spent feel no responsibility relating to ensuring value for money or economy, efficiency and effectiveness."

The party leader, Mr Ahern, said that in government the party would give constitutional status to local government by way of referendum. "Our policy initiative provides the basis for the most fundamental reforms in the administration of our affairs over a century."

The proposals also provide for the division of the Department off the Environment into two distinct departments. The Department of Conservation and Environmental Protection would be responsible for environmental protection legislation, the national parks and wildlife service, heritage, promotion of environmental awareness and implementation of all EU directives.

The Department of Local and Regional Development would be responsible for local government, water, sewerage, roads and European schemes.

Fianna Fail is also proposing the establishment of a "community police", made up of local authority officials, to ensure the implementation of anti litter and traffic by laws as well as taxation and insurance requirements.

The "community police" would also have a social function in coordinating with the Garda and the local community alert and neighbourhood watch schemes and assist the other social services in maintaining contact with the elderly and those living atone.

Commenting on the Fianna Fail plan generally, Mr Howlin said that in many respects it represented a welcome consensual approach to local government. But it would rob local authorities of their independence. He described the funding proposals as a route to increasing income tax.

. The former Taoiseach, Mr Charles Haughey, has told the Fianna Fail general secretary, Mr Pat Farrell, that he will not be attending the party's 62nd ard fheis which opens tonight in the RDS. Mr Haughey has not always attended ardfheiseanna since he quit as party leader in 1991.