New taxes may be part of pact on local authorities

THE Government and opposition parties may yet agree on new powers and funding mechanisms for local authorities before a general…

THE Government and opposition parties may yet agree on new powers and funding mechanisms for local authorities before a general election next year.

Special efforts are being made by the Government to placate Fianna Fail and to respond to its demands. The Minister for the Environment, Mr Howlin, has said he would be happy to discuss with Mr Noel Dempsey, the Fianna Fail environment spokesman, how progress could be made.

By linking new political powers at council level with the introduction of a local property/sales tax, Mr Howlin hopes to reach agreement with the opposition parties on a broad range of reforms.

"The conflict over local government funding has meant that nothing substantial has happened at local level for 25 years. I hope to make progress on this occasion and to give real powers back to local authorities," he said.

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"I feel that all political parties are well disposed towards local government reform at the moment."

Mr Dempsey has insisted that the party would not consider a new taxation system for local authorities in isolation. An all part committee would have to agree on what new powers would be available to councillors, as well 5on funding arrangements, and the Government should be bound by its decisions, he said.

"The over riding issue is giving power back to the elected representatives at local level," Mr Dempsey said.

The Minister agrees. And while Mr Howlin described as "unprecedented" Fianna Fail's demand that the findings of the all party committee should be binding on the Government, the political consensus he is seeking is also unprecedented.

Already, the Government has acted to minimise the possibility of friction with Fianna Fail.