There is less in the "New Deal for Local Government", unveiled on Monday by the Minister for the Environment and Local Government, Mr Dempsey, than might reasonably have been expected. In Opposition, the Minister was extremely critical of the mechanisms proposed by the last government for the funding of local authorities; in government, he would appear to have embraced them with some enthusiasm, even if cosmetic changes were made around the edges. But there is nothing new or startling in a Minister for the Environment or, indeed, a government, failing to tackle courageously the politically sensitive issue of local authority funding.
Funding for councils and corporations has been a perennial problem since Fianna Fail abolished domestic rates more than 20 years ago. A replacement mechanism, involving a rates support grant, never worked satisfactorily because of the financial shortfall which grew with inflation. And a system of local charges for water and services, such as refuse collection, proved to be so unpopular - and so politically sensitive - that the last government abolished the charges in 1996.
At about that time, the former minister for the environment, Mr Brendan Howlin, commissioned a study on local government funding, which he then ignored in favour of funding councils through the revenue raised from car tax. He was criticised at the time - and correctly so - by Mr Dempsey who held that "the system of local government should not be towed behind the family car". The Fianna Fail spokesman was appalled by Mr Howlin's proposal that local authorities would be given the option of increasing car tax for two years by up to 3 per cent.
It seems that, in Government, Mr Dempsey has had a change of heart on the first matter and, on the second, he promises to legislate for a 6 per cent increase over two years. Changes are also proposed in line with the programme for government. A "cap" is to be placed on the ability of local authorities to levy commercial rates, thereby removing the only discretionary tax-raising power of such bodies. But details of this new arrangement have yet to be announced. In the same way, while Mr Dempsey declares that car tax will be made available to fund local authorities, with a guaranteed 6 per cent increase over two years, he does not specify how this money will be divided between the various bodies.
The previous government announced that 80 per cent of such money was to be spent where it was raised, with 20 per cent being allocated by central government in an equitable way. Mr Dempsey has left us guessing. His initiative would appear to lack both courage and imagination. As of now, it doesn't seem to be much of a "new deal".