Report of the Local Government Efficiency Review Group

educe the number of such transactions and the associated costs by up to
25%, once the upfront costs associated with a move to e-planning have
been met (including software, licensing and hardware costs. A 25% cost
saving, based on the 2010 estimates for local authority development
management costs, would suggest a cost saving of the order of €15 million
per annum, once the majority of planning applications are received and
processed by means of e-planning processes. This figure is based on a
2010 budgeted expenditure of €105.9 million nationally for development
management, of which some €70 million is estimated to be made up of
staffing costs.
10.4.18 There are also potential efficiencies to be gained in examining the time
taken to process planning applications, the various steps involved in the
process, and the scope for streamlining.
10.4.19 The Group recommends that the planning fee levels set by the Department
of the Environment, Heritage and Local Government should be revised to
allow for a greater recovery of administrative costs for different types and
scales of planning applications. An initial increase, to allow 50% cost
recovery, should be introduced at this stage. The increase in fees should
be linked to an accelerated roll-out of e-planning in local authorities, with the
aim of reducing transaction costs for both the local authorities and
customers. A further move to greater cost recovery (to say 75%) could be
facilitated within 3 years but only as a quid pro quo for the introduction of
ePlanning and the provision of greater efficiencies and removal of costs
from the development management system. A move to full cost recovery
over a 5 year period should also be envisaged.
10.4.20 The cost of introducing ePlanning would be met from increased fees; the
cost of implementing to ePlanning on national basis is estimated at €5
million.
10.4.21 The Department had identified a range of proposed improvements to the
planning system at local level arising from a fees increase. These include:
• Over the counter validation of applications in planning authority offices;
• Pre-application consultations on demand for significant development
proposals; and
• Regular information sessions or planning advice clinics.
10.4.22 The Group believes that these are the minimum in terms of service
improvements that should be achieved in response to an increase in fees.
10.4.23 As part of the introduction of ePlanning, the Group also recommends that a
Business Process Re-Engineering exercise of development management in
a representative sample of local authorities be undertaken to determine best
practice and high efficiency models in the development management
function.
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