Report of the Local Government Efficiency Review Group

well as reductions in the number of transactions (arising from a more
structured ordering processes), the benefits have been in the order of €250
million in the period 2006-2009. There is a recurring cost saving per annum
of approximately €58 million based on current expenditure levels.
3.3.6 Further refinements of the LAQuotes system are planned for the future, for
example to allow multiparty framework agreements and electronic requests
for a quotation. These should result in additional efficiencies and savings
arising from more competitive pricing and further reductions in
administrative overheads.
3.3.7 Further details on the background to LA Quotes, as well as a more detailed
analysis of local government procurement, are contained in section 9.
3.4 Staff Reductions
3.4.1 Since 2003, local authorities have operated within a staffing quota system
agreed with the Department of Finance and the Department of Environment,
Heritage and Local Government. In March 2009, the Government
introduced a moratorium on recruitment.
3.4.2 Staffing levels in the local government sector have been reduced by 5,000
in the period between mid-2008 and early 2010. This represented a
reduction of over 13% in the overall number of local government staff, which
has contributed significantly to the reduction of the cost base of local
government. The operation of the moratorium, the utilisation of the
Incentivised Scheme of Early Retirement and the non-retention of significant
numbers of contract staff have all added to this reduction.
3.4.3 The bulk of this reduction (78%) has been in the employment of contract
staff, with permanent staff representing 22%.
3.4.4 The moratorium, while effective in reducing staff numbers is somewhat
uneven in that staffing reductions in different local authorities and different
grades and service areas have varied considerably, depending both on the
numbers of contract staff and the age profile of people working in the area.
The moratorium on staff numbers will require management to rebalance and
redeploy resources in line with service demands. This will involve using the
provisions of the Croke Park agreement as appropriate (see section 6).
3.5 Service Indicators
3.5.1 Since 2005 annual reports have been published on the performance of local
authorities across a range of service indicators. Following a review in 2008,
the number of indicators was increased from 42 to 46 and a number of
indicators were amended in order to ensure that the indicators remain
meaningful and relevant.
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