Government to increase revenue sources for councils

The government was aiming at improving the sources of non-government revenue of local councils because central government funding was not expected to rise by more than about Lm100,000 per year, Local Government Minister Austin Gatt told parliament yesterday. He said some 20 per cent of the revenue of local councils already came from non-government sources.

The minister was speaking after criticism by opposition local government spokesman Charles Mangion that the government's funding for local councils would decrease in real terms next year because the increase that was being given was half the inflation rate of nearly three per cent.

Notary Mangion in his remarks said the councils were incurring higher costs for the provision of services transferred by the government, such as the collection of rents.

It was true that the councils were receiving income from fines but this revenue was not uniform among the councils.

It had to be ensured, Notary Mangion said, that local councils did not end up becoming government agencies. They should not be used as a smokescreen for the government's inefficiency. Although he had nothing against the integration of councils with the administration, this should not be their only role.

He criticised the government for having shelved the socio-economic plan for the south of Malta, about which there was broad agreement. The concept of local councils working together as a region would be beneficial for the whole area, particularly for the provision of sports facilities, waste management, protection of the historical heritage, tourism, road networking and traffic management as well as social services.

Notary Mangion said local councils had been given responsibility for the replacement of street lights without Enemalta giving them the necessary infrastructural support or funds.

The councils were being given Lm90 for each bus shelter they replaced, when the cost was Lm100 each. The councils also frequently complained about problems with the Water Services Corporation regarding the replacement of water pipes or road works. Coordination was far from seamless.

Notary Mangion said promised new arrangements between the Roads Department and local councils on road works had not come about. Now Gudja council had agreed with the department that it would carry out the necessary roadworks itself and be paid by the department over a period of three years. The central government, therefore, had been given a credit facility by a local council. These things were unheard of.

The Labour MP observed that no arrangements had been made yet for local councils to utilise facilities in state schools once the school day ended. As a result, facilities of millions of liri were being massively under- utilised.

The Foundation for Tomorrow's Schools also needed to work closely with the councils on the needs of the schools in their locality.

Labour MP Joseph Cuschieri criticised the government for introducing VAT on local council services.

He said that while the opposition was not against the wardens system, there was need for seriousness. At present the wardens were only a factory dishing out fines. Although there was no official ticket quota, the wardens knew that if they did not issue a particular number of tickets, their job could be threatened.

Mr Cuschieri said the transport minister was not heeding the requests of many councils for road works.

He said under-utilised human resources within the public service should start being utilised by the councils.

Replying, Dr Gatt said the opposition could not say much about local councils. Under the Labour government, funding for the councils had dropped by Lm1.7 million and they could not be given additional responsibilities.

The last budget allocation for the councils by the Labour government was Lm8.3 million. Now it was Lm10.7 million. The total income of the councils, for all sources, had risen from Lm8.5 million in 1998 to Lm13.3 million now.

Dr Gatt observed that between 1996 and 1997, 15 councils had a deficit. By 1998-99 that had risen to 23 councils. Since then a new system had been introduced and now only two councils had problem deficits: Ghajnsielem at Lm3,000 and Zebbug (M) at Lm31,000.

The minister said the councils were being given the opportunity to venture out into new areas which were closed to them under Labour. They were now enthusiastically administering 35 public libraries and the number of books had been increased in nearly every library.

The councils were also benefiting from the devolution of public property.

Dr Gatt said agreements on roadworks, such as that reached with Gudja council, had been proposed by the councils themselves.

The minister said he could not understand how Mr Cuschieri could accuse the wardens of being a factory dishing out tickets. The GWU had claimed that the wardens had to achieve a certain quota of bookings. The government had denied it had such a policy. Furthermore, the list of councils the GWU had issued were all run by Labour councillors.

Nationalist MP Carmelo Mifsud Bonnici welcomed the way how local councils had been entrenched in the constitution.

He said the way the councils were assuming greater responsibilities was a vote of confidence in their abilities to carry the burden and provide a better service to the people.

Dr Mifsud Bonnici praised the councils for their administration of regional libraries and for utilising historic buildings.

Local councils were instilling greater pride in each locality, as well as greater discipline.

He suggested that local councils should be rewarded for projects such as the separation of waste.