Report of the Local Government Efficiency Review Group

enefits of centralising specialised skills in these areas as a combined
service available to several local authorities, the extension of RDO
responsibilities into these areas has the potential to yield savings.
10.2.10 The Group considers that there are opportunities to streamline the number
of RDO locations, and that each RDO should serve several county areas. It
is not clear why a number of the Offices only serve a single county area,
and there would be opportunities for economies of scale here in light of the
specialised nature of the work done. The Group understands that a
reduction in the number of RDO offices and an extension of their roads
functions could lead to a saving of some €5 million on 2009 levels and
efficiencies of the order of €5 million per annum. The new RDO structures
should reflect any new regional structures which may be proposed in the
White Paper on Local Government (see section 1.5). RDOs are financed
from the capital budget through the Department of Transport, the combined
effect would be to increase the funding available for direct investment by up
to €10 million per annum, some of which has already been achieved.
10.2.11 The Group also believes that the RDOs are a good model of shared
technical support services which could be replicated in other local authority
service areas. Investment in the inter-urban routes between the major cities
is now largely complete. With a viewing to maximising value for money,
spare capacity in the RDOs could be utilised in other service areas. The
Group suggests that specialised skills such as procurement, land
acquisition, project management through planning and construction and
asset management, would also be beneficial as support services to other
local authority services involving strategic infrastructural investments, such
as water, waste management and public lighting. The NRA has also
indicated to the Group its willingness to provide support and advice to local
authorities based on its expertise in PPPs. In that context, the Group
suggests that the RDO model be expanded to incorporate technical support
services to a number of local authority service areas and not simply be
confined to road-related work. One implication of this would be that the
governance and management arrangements for the RDOs would have to be
reviewed in light of their taking on new responsibilities. The gross benefit of
this enhanced role for the RDOs could be up to 5% of the capital investment
involved, but there would be some offsetting staffing and administrative
costs as that role increased.
10.2.12 The Group also considers that greater efficiencies could be secured through
uniform technical specifications, use of project management guidelines and
making bridge/ technical specialists available to local authorities, either via
RDOs or through the NRA. It is not possible to quantify the financial
benefits at this point.
10.2.13 The Group understands that the Department of Transport is currently
investigating the reasons for variations in unit costs and rates for road
improvement and maintenance works. The Group consider that this matter
should be pursued as a matter of priority.
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