Report of the Local Government Efficiency Review Group

associated Government Statement, necessary legal compliance by
local authorities particularly in relation to environmental requirements,
public health, and health and safety, and have regard to the state of
the public finances.
1.2.4 The origins of this examination of local government are in the severe
financial crisis facing the State and the need for all levels of
government to contribute to national recovery. The extent of that
crisis is amply illustrated in Table 2.1 below.
1.2.5 The Groups’ analysis was not exclusively focussed on financial
concerns. There is a need not only to seek cost savings but to
ensure that the well developed structure of local government and the
efforts of the many publicly motivated local government members
and officials are directed towards improving and extending the
delivery of local public services in the most efficient and effective
way.
1.2.6 The Group was impressed by the skills and dedication of the public
representatives and local government managers and officials that it
met and their obvious pride in and devotion to both the national and
the local interests of citizens. It is important to build on that.
1.2.7 There are a number of recurrent themes and guiding principles in the
report which the Group believes should inform the approach we as a
nation take to local government. These are set out below.
1.2.8 Firstly, aside from providing a democratic forum at local level, a key
role of local government is to provide public services and it should be
judged by how well it performs this function. It should be measured
by performance and rewarded for managing above the norm. The
extensive range of service indicators on the 34 county and city
councils collated and published by the Local Government
Management Agency should be used more widely as a management
tool to identify good performing providers and to assist those lower
down the rank to improve. Resource allocation and the structure of
fees and charges should reward above average performance and
encourage it. We recognise the practical and policy issues involved
but the principle of encouraging the best should be a guiding one.
1.2.9 Secondly, the system of local authorities must be structured
efficiently. What is best done at county level should be done there,
such as planning and roads. What is better done at town level
should be concentrated there, such as community development and
leadership. As Appendix 5 shows, there is a major difference in
spend per head of population by the various local authorities and in
many cases, the spend per head is so low that there must be at least
question-marks over what such small local bodies can contribute.
Services must also be rationally and effectively delivered, and this
includes through cooperation between particular local authorities on a
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