FF TDs say Dempsey's Bill could bring in domestic rates `by stealth'

A significant number of Fianna Fail TDs and senators, already angry that they are to be denied pay to sit on local authorities…

A significant number of Fianna Fail TDs and senators, already angry that they are to be denied pay to sit on local authorities, last night widened their attack upon the Minister for the Environment. Following a day of bitter behind-the-scenes complaints about Mr Dempsey, many complained that little-noticed sections in the Local Government Bill could reintroduce "domestic rates by stealth".

Under the Bill, which finished Committee Stage late on Wednesday, councils will be able to levy "annual contributions" from households to pay for improvements in some local services. Up to now, they have had powers to levy only water and refuse charges on domestic households, though the water levy has long since fallen in the face of public opinion.

If levied, the tax will be put into a special fund and used for "amenity, recreational, cultural, or heritage facilities, the protection or enhancement of the environment and programmes to promote community development".

A decision to raise such a levy can only be made by a local authority, not by the Department of the Environment. In addition, communities will have to be consulted, possibly by local referendums.

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Last night, a succession of Fianna Fail TDs complained sharply that they had only become aware of the sections in recent days, even though Mr Dempsey published the Bill in May 2000.

"A terrible amount of legislation goes through every year. You can't be aware of everything that goes on unless somebody tells you," said one backbencher, speaking on condition of anonymity. Another TD warned that the Department might in future offer only to part-fund some projects and demand a local contribution.

However, there is a degree of vengeance among some TDs, who reacted in fury when they realised that the Minister intended to deny them the £10,000-ayear councillor's salary. The Minister for Defence, Mr Smith, who is dealing with the Local Government Bill during Mr Dempsey's illness, told backbenchers he was "in the middle of resolving" the pay row.

Labour TD Mr Eamon Gil more accepted that authorities would not rush to use the household levy, but they could come under pressure in coming years if they face financial difficulties.

"County managers will propose that things are dealt with by such an initiative and say we can do it, but you will have to pay for it by a new charge. Some areas will be able to do that. Poorer areas will not," he said.

However, the Department said: "(This) is not another form of local tax. It is designed to assist a local authority to support a local community in developing amenities in a partnership approach."

Independent Kerry South TD Mr Jackie Healy-Rae raised concerns about the levy with Fianna Fail colleagues yesterday, though by last evening he appeared unconcerned.

"I am not worried about this being rates by stealth. You can be sure that I would not have any part of that," he said.

He said the four Government-supporting Independent TDs would not try to force Mr Dempsey to pay TDs and senators for council work, even though they had once offered to do the work for nothing.

Mr Healy-Rae has been lobbied heavily by Fianna Fail TDs on the issue.

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times