The Minister for the Environment, Community and Local Government, Mr. Phil Hogan T.D., today (11 July 2013), made his comments on the publication of the latest Report of the Local Government Efficiency Review (LGER) Implementation Group.
The County and City Managers’ Association, in its input to the Report, has confirmed total savings of €839m since 2008, the beginning of the economic crisis. In the period since the preparation of the LGER Report (2010 to end 2012), the savings achieved and projected are reported at €561m. This includes €229m (already more than half the €346m identified as potential direct efficiency savings in the LGER Report) attributed to efficiency measures (as opposed to reduction in activity) in the years 2010 to the end of 2012. The majority of the efficiency savings identified relate to staffing reductions and procurement.
Minister Hogan welcomed the substantial efficiency savings achieved by the local government sector over the past 3 years. “The local government sector continues to make significant progress on implementing the efficiency changes recommended in the original LGER Report”, said Minister Hogan, “however, it is imperative that the rate of implementation of the efficiency agenda is accelerated by the sector to ensure the overall targeted efficiency savings (€346m) are achieved in a timely manner. He added, “Substantial savings have been delivered in the sector from improved efficiencies and better business processes, while maintaining and improving services to citizens”.
Minister Hogan acknowledged the ongoing reduction of staffing levels within the local government sector, “local authorities have shed some 8,900 staff since June 2008 whilst continuing to maintain an impressive level of public service delivery”. Staff numbers at end-December 2012 were 28,344, down from 37,243 in 2008.
“The establishment of the CCMA Programme Management Office and the Public Service Reform Oversight Group has facilitated the sector in addressing the particular challenges arising from the implementation of the LGER Report as it involved the allocation of a specific resource and governance structure to address that specific agenda” Minister Hogan continued, “While the current implementation structures have delivered the first wave of savings and assessing approaches for further savings, and have ensured commitment of all local authorities to the efficiency agenda, it is now timely to consider the establishment of a national organisational structure with sufficient qualified resources to design and deliver the proposals successfully, and with the present structures being replaced by more permanent structures.
The Implementation Group, with independent chair Pat McLoughlin and private sector expertise, was established by Minister Hogan in April 2011 and tasked with overseeing and advising on the implementation of the Report of the Local Government Efficiency Review Group.
The Group and the CCMA prioritised the implementation of key recommendations relating to procurement, ICT, human resources/staffing and shared services as areas with potential yield the optimum level of savings in regard to the implementation of the efficiency agenda within the sector.
The Minister also made reference to the establishment of the National Oversight and Audit Commission. “The Action Programme for Effective Local Government, which I published late last year, sets out Government policy for reform of local government and, inter alia, includes the establishment of a National Oversight and Audit Commission (NOAC)”.
“To maintain and enhance the impetus of the efficiency agenda in the local government sector, the NOAC will provide an independent high quality scrutiny of local government performance in fulfilling national, regional and local mandates”, the Minister continued, “The independently chaired Commission, involving external evaluation expertise, combined with political and administrative experience is not intended to involve the creation of a new costly bureaucracy, rather will be a key part of a new system of national, regional and local accountability, providing appropriate external scrutiny, evaluation and audit of local authority performance”.
The Commission will report publicly and to relevant Ministers, Oireachtas Committees, regional assemblies and local authorities and its establishment will be undertaken as part of the implementation of the wide ranging reforms set out in the Action Programme for Effective Local Government, legislation for which is currently being drafted.
County and City Manager’s Association Report to Minister (March 2013)
County and City Manager’s Association Report to Minister (March 2013): Appendices
Notes for Editors
Local Government Efficiency Review Report Implementation Group
The Group’s Report contains 106 recommendations for efficiency and other savings of €511m for the local government sector to be attained in the short, medium and long terms. These savings are comprised of €346m in efficiencies and €165m in improved cost recovery and revenue-raising.
In summary, the recommendations relate to: -
staffing;
securing optimal efficiency in the delivery of local government service areas across functional boundaries;
local government procurement;
greater efficiency in the delivery of specific local government services,;
greater use of shared services and a regional / national approach to service provision and support functions in specific areas;
audit, financial control and performance measurement and reporting,;
full recovery of amounts due to local authorities;
greater cost recovery and revenue for local government services.
Headline Progress
Overall Savings Identified by CCMA 2008 to 2012: €839m
Overall Savings Identified in respect of gross expenditure savings and capital payroll savings 2010-2012: €561m
Efficiency Savings Identified in LGER Report: 2010-2012: €229.6m
Made up of:
Ø Staffing Reductions: €98.1m
Ø Procurement: €108.8m
Ø Treasury Management / Advertising / Consultancies & Professional Fees: €14.7m
Ø Consolidation of hazardous waste controls into lead authorities: €5m
Ø Shared HR and Payroll system: €3m
Members of Implementation Group
The members of the Local Government Efficiency Review Implementation Group are:-
Mr. Pat McLoughlin (Chairman), Chief Executive, Irish Payments Services Organisation, and former chairman of the Local Government Efficiency Review Group
Mr. Des Dowling, Assistant Secretary, Local Government, Department of the Environment, Community and Local Government
Mr Garrett Fennell, Managing Director, GFC Consulting Ltd
Mr. David Hearn, Consulting Partner in Charge, Deloitte
Ms. Anne O’Keeffe, Former Director, Office of Local Authority Management
National Oversight and Audit Commission
The Action Programme for Effective Local Government, published in October 2012, sets out Government policy for reform of local government and, inter alia, includes the establishment of a National Oversight and Audit Commission (NOAC).
The NOAC will provide an independent high quality scrutiny of local government performance in fulfilling national, regional and local mandates. It will involve external evaluation expertise, political and administrative experience, and an independent chair.
The Commission will be a key part of a new system of national, regional and local accountability, providing appropriate external scrutiny, evaluation and audit of local authority performance. It will provide independent scrutiny of local government performance in fulfilling national, regional and local mandates. It will:
oversee national policy implementation by local government;
monitor and evaluated progress on public service reform and efficiency delivery;
support enhancement and dissemination of best practice;
scrutinise performance against performance standards, customer service requirements and service level agreements with central Departments and agencies.
The NOAC will report publicly to relevant Ministers, sectoral Oireachtas Committees, regional assemblies and local authorities.