Report of the Local Government Efficiency Review Group

Minister for Education and Skills to aggregate the administration of Higher
Education Grants into Vocational Educational Committees (VECs), or local
authorities, or to outsource parts of the service. An online application
process is also currently being developed, and greater use is being made of
EFT (electronic funds transfer) rather than issuing cheques for grant
payments. These developments would be expected to substantially
increase the efficiencies and reduce the overheads associated with this
service. There is also a case for undertaking this payment function on a
shared service basis using an existing public service provider.
13.2.5 Nevertheless, irrespective of a Government decision on the future of Higher
Education Grants, and pending a possible transfer of functions in this area,
the Group considers that local authorities should be reimbursed for the
administrative overheads associated with this work as long as they continue
to be responsible for processing Higher Education Grants on behalf of the
Department of Education and Skills.
13.2.6 The same principle should equally apply to agency services carried out by
local authorities for other Government Departments (such as civil defence,
coroners, etc.). The Group recommends full cost recovery for all services
carried out by local authorities on behalf of central government, provided
these are being managed efficiently.
13.2.7 In 2010, local authorities also budgeted to make a contribution towards the
cost of VECs of almost €2 million. The Group considers that this
contribution should be ceased as soon as possible. The necessary
legislative changes should be progressed accordingly.
13.3 Rationalisation of Provisions on Charging, Penalties and Revenue
Collection
13.3.1 The total amount of arrears due to local authorities from housing rents and
loans, commercial water charges, commercial rates and waste charges in
2008 was just under €410 million. This figure does not include development
levies due to local authority capital accounts.
13.3.2 The Group suggests that a more efficient approach to revenue collection of
social housing rents would be for the Department of Social Protection to pay
the rents due to local authorities directly to the local authorities concerned
instead of the social welfare recipient. The current system involves the
State making payments to social welfare recipients who are also in receipt
of social housing support, only for another public body to have to seek to
recover a proportion of many of these payments in social housing rents, and
ultimately on occasion through the Courts. This is an inefficient and
wasteful use of State resources. Direct deductions of rents at source, as
well as being a more efficient use of resources, would also streamline
processes for local authority tenants and reduce the time they have to
spend dealing with rent collectors. The new system would result in
considerable annual savings in the costs associated with rent collection, as
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