Funding
Following the abolition of domestic property rates in the late 1970s, local councils have found it extremely difficult to raise money. The shortfall from the abolition of property rates led to the introduction of service charges for water and refuse, but these were highly unpopular in certain areas and led in certain cases to large-scale non-payment. Arising from a decision made by the Rainbow Government domestic water charges were abolished on 1 January 1997 placing further pressure on local government funding.
The Department of Finance is a significant source of funding at present, and additional sources are rates on commercial and industrial property, housing rents, service charges and borrowing. The dependence on Exchequer has led to charges that the Republic has an overly centralised system of local government.
It is worth noting that over the past three decades numerous studies carried out by consultants on behalf of the Government have recommended the reintroduction of some form of local taxation/charging regime, but these were generally seen as politically unacceptable. However, in 2012 the Local Government Management Agency was established to provide a central data management service to enable the collection of the Home Charge, the Non Principle Private Residence (NPPR) charge and the proposed Water charge.
The most recent report on local government funding, carried out by the Indecon Consortium, is due to be published in the near future.
Since 1999, Motor Tax is paid into the Local Government Fund, established by the Local Government Act 1998 and is distributed on a "Needs and Resources" basis.
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