Minister Phelan announces review of the role and remuneration of elected members of local authorities

Mr. John Paul Phelan T.D., Minister of State for Local Government and Electoral Reform, announced today (21 June 2018) that he is commissioning a review of the role of elected members of local authorities. The review will also consider the remuneration and other supports provided to assist councillors in carrying out their duties.

The commissioning of the review was agreed with Mr. Pascal Donohoe, Minister for Finance, Public Expenditure and Reform, in accordance with the general provisions governing the expenses and remuneration of elected members under section 142 of the Local Government Act 2001, as amended.

The Minister has appointed Ms. Sara Moorhead SC to conduct the review, which will be informed by input from the Departments of Housing, Planning and Local Government and Public Expenditure and Reform. There will be consultation with elected members and their representative organisations (the Association of Irish Local Government (AILG) and Local Authority Members Association (LAMA)), County and City Management Association (CCMA) and wider consultation as appropriate.

Minister Phelan said “Effective local government structures are essential for our democracy. From my own experience in local government, I believe councillors are sincere, hard-working and give much of their own time in engaging with and contributing to their local communities. It is important that the role of councillors is clearly understood. Following the implementation of the local government reforms, in June 2014, councillors now have a broader portfolio of functions than before. It is only justifiable that they receive the necessary supports to allow them to fulfil their role as public representatives, in particular with regard to the carrying out of the functions assigned to them.”

Minister Phelan added: “I want to encourage and support a high calibre of elected councils across the country with a capacity to utilise their powers as effectively as possible for the benefit of local communities. This requires that the remuneration for individual councillors is fit for purpose, operates to the highest ethical standards and is fully transparent. I have full confidence in Ms. Sara Moorhead to undertake the review of the role and remuneration of councillors in a fair and impartial manner while also taking account of the views of councillors themselves.”

The review will produce an interim report within five months of the commencement of its work, with the timing of a final report to be considered thereafter. When the review is completed, its findings will be the subject of discussion between the Departments of Housing, Planning and Local Government and Public Expenditure and Reform. It will be submitted thereafter for the consideration of the Government.

ENDS

Notes for the Editor

A range of supports are already in place for councillors, including the following:

• a Representational Payment worth €16,891 per annum, a salary type payment that is recognition of the work that councillors volunteer to undertake when they assume office
• an Annual Expenses Allowance to offset travel, subsistence and miscellaneous expenses incurred in attending council meetings
• general travel and subsistence expenses, at the same rates that apply for civil servants, for attendances at events not covered by the Annual Expenses Allowance (such as training events and conferences)
• a mobile phone allowance worth up to €600 per annum
• a lump sum gratuity payment on retirement, set at a maximum of 400% of the Representational Payment after 20 years of service
• some councillors may also receive an additional chairperson’s allowance if they are serving a term as Cathaoirleach/Mayor of a local authority or Municipal District or as chair of a Strategic Policy Committee (SPC)

These supports are provided by way of regulations made under section 142 of the Local Government 2001, as amended, with the consent of the Minister for Finance, Public Expenditure and Reform. The terms and conditions associated with these payments can be viewed here:

With effect from 1 July 2017, additional supports were provided by way of amending regulations given effect by Minister Phelan:

• an additional allowance worth €1,000 per annum for members of municipal districts and area committees in relation to work carried out at sub-county level following the implementation of the local government reforms in 2014
• an optional vouched expenses allowance for miscellaneous expenses worth up to €5,000 per annum, which members may choose to opt for instead of an unvouched component of the Annual Expenses Allowance that is worth approx. €2,500 per annum

There are currently 949 councillors in 31 local authorities. This was reduced from 1,627 councillors in 114 local authorities as a result of the implementation of local government reforms in June 2014.

The reformed local government system also included a significant broadening of its functions. Most notably, local government was given a wider and clearer role in economic development. In addition, local authorities have a pro-active role in promoting economic development, focusing particularly on the strengths and opportunities in their areas and working closely with the development agencies, business and other relevant players.

Sara Moorhead was called to the Bar in 1989 and practiced as a Junior Counsel from 1989 to 2004. She has been a Senior Counsel since 2004.

Terms of Reference

Local Authority Elected Members Role & Remuneration Review

The Minister for Housing, Planning and Local Government and the Minister of State with special responsibility for Local Government and Electoral Reform, in conjunction with the Minister for Finance, Public Expenditure and Reform will commission a review of the role of elected members of local authorities as well as remuneration and other supports provided to assist members in carrying out their duties.

The review will be conducted by an individual appointed by the Minister, in consultation with the Minister for Finance, Public Expenditure and Reform.

The Review will be undertaken in consultation with elected members and their representative organisations (the Association of Irish Local Government (AILG) and Local Authority Members Association (LAMA)), County and City Management Association (CCMA) and wider consultation as appropriate.

The Review will be informed by inputs from officials from the Department of Public Expenditure & Reform as may be appropriate.

This Review will produce an interim report within five months of commencement that provides a full update on progress in fulfilling the mandate of these terms of reference.

When the review is completed, its findings will be the subject of discussion between the Departments of Housing, Planning and Local Government and Public Expenditure and Reform in the context of the arrangements provided for elected members under section 142 of the Local Government Act 2001, as amended and will be submitted thereafter for the consideration of the Government.

When reaching its findings the Review shall have regard to:

• data, research and evidence relevant to the issues under review including the commissioning of relevant material thereto
• the performance by local authority elected members of their functions generally (at both plenary and municipal level*, the number and range of meetings attended, and related issues, including appropriate training needs
• the leadership role of elected members in relation to major decisions of policy and how this role is influenced by current arrangements
• the governance role of elected members, including in relation to oversight, risk and audit practices of the local authority
• the representational role that elected members perform in service provision/access to services and the associated workload
• the report of the lea committees set up to review leas for all 31 local authorities
• the overall workload of elected members including advising on the amount of time reasonably required to enable them to undertake their duties
• factors influencing gender and wider diversity representation among elected members
• existing payments and allowances including the representational payment, annual expenses allowance, mobile phone allowance, travel and subsistence allowances, chairpersons allowances and gratuity payments including whether the existing statutory link between the representational payment and the senators’ basic salary is appropriate in all the circumstances
• the future impact on remuneration for elected members of local authorities of the further restoration of pay and allowances under the public service pay and pensions act, 2017
• the need for a consistent and administratively simplified mechanism for providing sufficient remuneration to elected members to offset the costs of travel related expenses, in particular given the plurality of public bodies to which elected members may be voluntarily nominated as well as their need to meet with constituents
• full account of the wider public pay and industrial relations context and the potential, in this regard, for changes to the supports provided to elected members giving rise to claims from other groups
• the findings of the report in respect of the measures to do with i) local government reforms and ii) remuneration supports to be treated as an integrated package for purposes of implementation