Proposed government reform to do away with local government structures and jobs in a bid to save more than €500 million has been roundly welcomed by representatives for the business community who are snapping up the suggestion and using it as ammunition to call for reduced rates and charges.
Hilary Haydon, chair of Chambers Ireland’s Ratepayers and Local Government Policy Council, said that local government savings must be passed back to business.
“The savings outlined in the report have the potential to help reduce the burden on local government funders, of which business is the largest,” she added. “Speedy implementation of the recommendations is therefore vital.”
Welcoming the publication of the report of the Local Government Efficiency Review Group, which was established in 2009 to review the cost base, expenditure of, and numbers employed in local authorities, Ms Hayden noted that if implemented quickly, many of the recommendations could deliver much needed savings to local authorities.
“Restructuring the system of local government in Ireland provides a real opportunity to introduce new and more efficient ways of providing local services. If implemented in their entirety, the reforms outlined by the review group would result in savings of in the region of €511 million. Given that business has been the funder of ‘last resort’ for many local authorities, it follows that a significant amount of the cost savings achieved must be passed back to businesses in the form of reduced rates and other charges.”
The body also supports the implementation of water charges.
“The case for introducing water charges for all service users was made clear at the beginning of 2010 when many local authorities were forced to reduce water pressure and in some cases stop supplies due to critically low reservoir levels. The Minister must act now to introduce water meters, for all users, so that all usage can be accounted for,” Haydon concluded.
Chambers Ireland is Ireland’s largest business network with 60 member chambers representing 13,000 businesses on the island of Ireland.
