Addressing Local Government Reform in Ireland

Addressing Local Government Reform

Local government reform remains a perennial issue in Irish politics. To maintain effective governance it is necessary to review and reform our political structures on a regular basis. While on the whole the system has performed quiet well, there is now a general consensus that new reforms are required to deal with bottlenecks and underperformance. In the current climate there is now greater pressure on more cost-effective public sector performance. But beyond financial reforms, we also now have the opportunity to introduce a root and branch reform that can deliver a more efficient and also responsive public service. In this article is a brief exploration of a potential direction for reform in the hopes of stimulating a conversation.

The majority opinion emphasises three principles in order to achieve the best quality governance system. The first is democratic accountability, emphasising subsidiarity, a concept practised in EU decision-making that promotes maximum political input at the level closest to the people it effects. This principle allows for the delivery of both accountability and transparency, while at the same time facilitating a more effective delivery of public services. The second is financial self-sufficiency for local authorities. In order for an authority at any level to operate effectively it requires financial autonomy, i.e. an ability to fund its own policies. Finally, a clear delineation of the roles and powers of politicians and public servants is necessary in order to avoid overlapping jurisdictions and miscommunication in order to deliver the most productive service to the public. All of these objectives can be met within existing resource allocations and if adhered can deliver a more efficient use of said resources at no extra cost to the exchequer.

It is important to remember that the functions of local government have for the most part been determined by a historical legacy that does not reflect modern practical and political considerations. The changes that we have seen since the Celtic Tiger require a more flexible and adaptive system which our present Dublin-centric centralised approach does not facilitate. Population growth, urban development and the demands of our modern economy have put greater pressures on local government structures than ever before. If we are to maintain our competiveness in the global economy and meet the needs of the public we need to be willing to address the need for structural change.

The current three-tier system has performed well over the years and is the only viable system given the geographical nature of our country. The reforms therefore need to be focused on the particular tiers themselves and the role we give to our political representatives and public servants.

These need to start with the smallest unit of local government at Sub-County level. These are the town councils, which have become increasingly ineffective due to lack of resources and outdated demographic boundaries. The solution is to fold them into a new town and district council system that reflects modern population distributions and that are properly funded through the ability to raise their own revenues via a revised local rate system. This would be modelled on the successes of the last local government reforms introduced at a City and County level. Under this system Area Committees were set up by County Councils which were able to tailor services to the locality and which would then be distributed by a Director of Services. A similar system applied at a new town and district level would enable a more effective and democratic provision of service in a traditionally neglected tier of local government.

At the City and Council level there are a number of concerns around demographics. Currently there a number of towns which have populations which are too large to be effectively serviced by town councils. Similarly there are a number of borough councils which are inadequate to meet the demands of their urban communities. The current system has been in place since the 19th century and needs to be updated to properly represent today’s population distribution. An important step to achieving this is a national review of urban governance structures. This can allow overburdened town councils to be up-scaled into boroughs where necessary. However, in certain counties like Louth where there are two large urban centres with significant hinterlands, a more effective system may be to introduce Municipal Councils which would replace the county council delivering a more streamlined service that can be both more representative and effective. This model should be applied voluntarily in line with democratic principles wherein the county council would vote on it and can be adapted wherever demographics deem necessary.

The third tier should be the regional level. Currently there is little regional governance. This makes efficient infrastructural and economic development more difficult than it has to be. The benefits from a regional structure through which neighbouring county administrations can cooperate and forward plan are considerable. Water services, waste management, environmental policy, infrastructural development, tourism and rural development to mention but a few are all areas where greater regional cooperation would be of great benefit. By creating a structure within which city and county councils can coordinate policy development, greater cost efficiencies and democratic dividends can be actualised. The regional units would not be in the mould of city or county councils at regional level, but rather they would be forums wherein councils would appoint representatives to negotiate common positions with their neighbours. In effect power would remain in the hands of counties, the regional institutions acting as instruments of collective action. These institutions would be funded by both central and local government and involve both parties in the formation of region specific policy. They should reflect geographic and demographic realities and have representation in the Oireachtas.

A contingent part of the reform of structures is also a new approach to the role of local administrators. In Dublin within the next year we will see a directly elected Mayor. Ideally this could be rolled out to all the major cities in the state and be built upon. The OECD, as well as various academic investigations, suggest that there is a need for a comprehensive review of the local government in Ireland. It is currently one of the most limited in Western Europe. The Local Government Reforms of 2000 have gone some way to addressing perceptions of clientelism and under-performance, however beyond the aforementioned structural changes, a central element of better service provision is the delegation of greater powers to local authorities. This covers areas such as childcare, education and economic development amongst others. To meet the demands of such responsibility requires greater empowerment of local councillors, who currently have limited means and awareness of their roles.

A potential approach to this problem is to replace the haphazard Strategic Policy Boards with more permanent cabinets, which would give specific portfolios to councillors and are appointed by directly elected Mayors. Furthermore, the council structure should engage more with non-government agencies and lead the way when dealing with local problems. Finally the question of economic self-sufficency, this will ultimately require a review of the current revenue system looking at water, local sales and property rates in particular. It is vitally important that any new powers delegated to local government be financed at a local level if performance is to be optimised, moreover local politicians will also need to take responsibility for it, with scope for central government oversight on revenue plans. Additionally this will have the secondary effect of also reducing the financial burden on central government.

The benefit of such an approach is a more reflexive and ultimately more effective local service provision which delivers both greater cost efficiency and accountability. As the saying goes, every cloud has a silver-lining, and with the doom and gloom of the recession so too is there the potential for real progress. In this time of heightened sensitivity to issues of costs, we have an opportunity to make some significant changes which may not only help us reduce our national deficit but also make our government more responsive to its public. What has been covered is far from a detailed plan of action, but can be the basis for beginning to address a progressive and effective approach to reform.