Report of the Local Government Efficiency Review Group

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jointly administered basis. This is a major theme of sections 5, 6 and 8 of the report. Efficiency and cost containment are important not just in money terms, but because local business relies on efficient and effective public local services and efficient local authorities are a key element in restoring national competitiveness. The savings inherent in this report should help reduce the burden that would otherwise fall on those who pay for local government. 1.2.10 Thirdly, local authorities should have a lead role in the provision of local services, especially in community services. This does not mean that all local publicly-funded activities must be run by local authorities but they should be linked with the local government system. There are a multitude of local bodies funded centrally by Government Departments, often by more than one Department with little reference to the local authorities concerned. This is not good administrative practice either locally or centrally and must lead to duplication of resources and effort, with consequent costs for the Exchequer and the community. 1.2.11 As with all elements of public administration, it is vital that resources are well managed at all times. That is why the Group has placed such emphasis on staffing and procurement. There are savings to be made here without putting service levels at risk. There are possibilities for transferring tasks down to a more appropriate level within local authority grades. Anecdotal evidence suggests that the opposite process has been at work in the past ten years or so as new grading structures were developed. There is a need to allocate responsibility for tasks to the right level of actual service provision. There are opportunities in redeployment, in materials purchasing, and in how services are organised which must be availed of to allow Government to provide more public services with the existing or lower levels of inputs. 1.2.12 Finally, all public services must rely on sufficient funding. Otherwise they cannot be sustained. This applies all the more so at local level where there is a mixture of funding sources – local rates, charges for services and Exchequer funding either directly by transfers or via Departmental grants for services provided. It is important in all cases that revenue sources are broadly based, stable and service related. There is great risk in relying on highly cyclical revenues (such as development levies). Taxes and revenues are better based if related to what the local authority does. In this way those bodies that spend money on improving or extending their services may reap the extra revenue from the greater use of such services. 1.2.13 These principles are guiding themes, not prescriptions for every case. The Group used these as guiding principles in its work, not just in terms of how they can yield cost savings, but also improvements in service quality. Many of the savings will take time fully to be realised. Others will yield results more immediately. Public accounting is now 8
more focussed than previously on multi-annual budgeting. Public financing is based on a plan to reduce the fiscal deficit to 3% by 2014; in these circumstances, a saving in two to three years time is just as important as a saving in 2011 and should not be discounted or devalued because it takes time to be realised. 1.3 Approach and Methodology 1.3.1 The Group at its initial meeting agreed an overall approach to its work and a work programme, with the aim of meeting the deadline of reporting by mid-2010. 1.3.2 The Group reviewed a large volume of financial data and other information on local government expenditure and revenue, as well as staffing levels. These data were examined by service area, by local authority, and trends identified across a number of years. Much of this information was held in the Department of the Environment, Heritage and Local Government and local authorities, and this was supplemented by other sources. 1.3.3 The Group launched a public consultation process in February 2010, inviting submissions from interested organisations and members of the public. Those making submissions were encouraged to identify possible savings and efficiencies and ensure that any proposals being made were relevant to one or more of the topics covered in the Group’s of reference. A full list of those making submissions to the Group is included as Appendix 1. 1.3.4 The Group also held a number of meetings with stakeholders, including representatives of local authorities at both elected and official levels, Government Departments/ agencies which interact with local authorities, and others. As with the written submissions, the focus of these meetings was also on identifying possible savings and reductions in expenditure, either through efficiencies or through reducing spend in certain areas. A list of those organisations that met with the Group is included as Appendix 2. 1.3.5 As issues arose, different papers were prepared by the Secretariat for consideration by the Group and to inform the Group’s work and its recommendations. 1.3.6 Sources for these papers included financial data, previous evaluations and reviews, VFM reports, information sourced from local authorities, and international studies and analyses of efficiency initiatives within local government. 9
Page 1 and 2: Report of the Local Government Effi
Page 3 and 4: 5. Organisational Efficiency Issues
Page 5 and 6: 14. Recommendations 14.1 Recommenda
Page 7: associated Government Statement, ne
Page 11 and 12: ating town councils is largely repr
Page 13 and 14: • The provision of quality custom
Page 15 and 16: 1.7 Compliance Requirements on Loca
Page 17 and 18: 2.1 National Public Finances 2. Bud
Page 19 and 20: Figure 2.2 - Total Local Authority
Page 21 and 22: evenue were needed for the local go
Page 23 and 24: Figure 2.3 - Sources of Local Autho
Page 25 and 26: Figure 2.4 -Sources of Local Author
Page 27 and 28: Figure 2.5 - Local Authority Curren
Page 29 and 30: Payroll Expenses Table 2.4 - Breakd
Page 31 and 32: 2. Reintroducing domestic water cha
Page 33 and 34: Income €m € 1,600.0 € 1,400.0
Page 35 and 36: 3. Local Government Experience of E
Page 37 and 38: maintenance are provided by the cou
Page 39 and 40: well as reductions in the number of
Page 41 and 42: 4. Context - Looking Forward 4.1 Na
Page 43 and 44: 4.2.6 Aside from keeping costs down
Page 45 and 46: 5. Organisational Efficiency Issues
Page 47 and 48: statutorily vested in certain ratin
Page 49 and 50: 5.5.6 Roads are classified into nat
Page 51 and 52: the majority of town councils, a pl
Page 53 and 54: 5.7 Other Local Bodies 5.7.1 A smal
Page 55 and 56: • County council offices / area o
Page 57 and 58: Figure 6.1 - Local Authority Staff
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Figure 6.2 - Staffing per 1,000 Pop
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Figure 6.5 - Staffing Per 1,000 Pop
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Cluster Data Cluster Mayo Roscommon
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senior management staff - for examp
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ut this figure varies from 22% to 5
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eplacement with lower level staff w
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Corporate Services, HR, IT, and Fin
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to provide services in the corporat
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Recommendations: 6.11.1 In summary,
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7.1 Local Government Audit 7. Value
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through open recruitment. Opportuni
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the Director and relevant local gov
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7.6.3 Local authorities should cons
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8. Shared Services 8.1 Shared Servi
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8.2.6 Many parts of the United Stat
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8.4 Shared ‘Back Office’ Servic
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8.4.12 For example, recruitment to
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approach which will be used to asse
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enefits in terms of pooling resourc
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while also improving the service fo
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Implementation Group suggested in s
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9.2.4 The Local Government e-Procur
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forms are now captured online. This
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Table 9.1 - Non-Pay Items Procured
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9.5.10 LAQuotes is used by the vast
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sectoral level, to promote exchange
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10.1 Housing 10. Efficiencies in Pr
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10.1.9 Two issues arise in this res
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that may arise in this respect as p
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the new Housing and Sustainable Com
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10.2.6 To date, the emphasis of tol
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10.2.14 The Group also noted the la
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• Allocating grants to improve th
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10.3.11 It would also facilitate th
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consumption (see also section 9 in
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Financial Summary: Through a combin
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current levels of resourcing for pl
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educe the number of such transactio
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Financial Summary: Through a combin
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in the trend of rationalisation of
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Table 10.1 - Motor Taxation Classes
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detail in issuing licences. Motor t
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11.1 Treasury Management 11. Other
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for the overdraft, has the potentia
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• The online Roadworks Control sy
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management, etc. Use of professiona
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• Projects to streamline existing
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12. Local Government and the Wider
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significant administrative overhead
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City Enterprise Boards with county/
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suggests that financial incentives
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13. Cost Recovery and Revenue Issue
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13.1.11 The Group considers that th
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Minister for Education and Skills t
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legislation provides that arrears o
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Recommendations: 13.5.1 In summary,
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14.1 Recommendations 14. Recommenda
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25. Financial performance indicator
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Housing 48. Housing sections within
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Planning monitoring by other public
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Local Government and the Wider Publ
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that just because these recommendat
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Appendix 1 - List of Submissions Re
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Appendix 2 - Local Government Effic
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Gross Current Income by Source and
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County Councils Housing and Buildin
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Town Councils Housing and Building
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Non-Rating Town Councils (1) Paymen
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Regional Assembly Payments Receipts
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Local Authority Current Expenditure
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Town Council Population Size (Censu
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Appendix 5 - Local Government Net B
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Former Town Commissioners 2010 Net
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Appendix 7 - Performance Indicators
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Appendix 9 - Unaccounted for Water
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Appendix 11 - Membership of County
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Report of the Local Government Efficiency Review Group

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