Local Taxation

The Coalition Government appears to be in the process of transferring responsibility for local authority funding to a system …

The Coalition Government appears to be in the process of transferring responsibility for local authority funding to a system of local taxation.

The latest move in that direction was unveiled by the Minister for the Environment, Mr Cullen, during the week when he published the Protection of the Environment Bill, 2003, which gives city and county managers the power to impose waste charges.

The removal of that function from elected representatives is a sure sign of higher charges ahead. Opposition parties have estimated a doubling of bin collection fees to €600-€700 a year. Even as the Minister for Finance, Mr McCreevy, continues to boast about the low rate of standard income tax, a series of stealth taxes is being introduced to compensate for shortfalls in Exchequer funding for a range of services.

Local authorities have been particularly hard hit, because they will have to fund benchmarked pay awards from their own resources. Extra money will come from higher motor taxation fees. But the Government has frozen its own contribution to the Local Government Fund at last year's level. Higher charges will be required to pay for new and existing services.

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Mr Cullen is to be complimented on his determination to take action on waste management. Public debate has drifted aimlessly for years and most councils no longer have adequately licensed landfill space. Recycling facilities are extremely expensive. The incineration nettle has yet to be grasped.

To break that impasse, more power will be transferred to local authority managers. Last year, they were given the power to decide waste policy. Now they will set charges for bin collections. Those householders who refuse to pay will not have their garbage collected.Defaulters who subsequently cause littering or a public nuisance by scattering of rubbish will be fined.

This transfer of power will have an unfortunate effect on local democracy. Against that, Mr Cullen argues a waste crisis exists and early action is imperative. He has promised a full review of the role and financing of local authorities, for publication in two years. It will coincide with new elections and the end of the dual mandate by Oireachtas members. Reinvigorating local democracy will then become an issue - when water charges will return as a means of raising extra money. The Government would do democracy and the electorate a favour by clarifying its intentions now rather than waiting on these developments.