Dáil debates

Thursday, 16 June 2011

Priority Questions

Local Government Audit

4:00 pm

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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Question 1: To ask the Minister for the Environment; Community and Local Government the steps he is taking to implement the recommendations of the Local Government Efficiency Report. [15860/11]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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A range of work is already underway or in planning arising from the report and I am considering the relevant revenue raising and other recommendations that require enabling legislation.

My Department has been working with local authorities to advance the efficiency group's agenda in areas such as shared services, procurement and in the use of online technology to improve efficiency and effectiveness in service delivery to the public. I have recently established an independent implementation group chaired by Pat McLoughlin, who also chaired the efficiency review group, to drive forward relevant recommendations of the report in areas such as shared services, procurement, value for money and audit. I have asked the group to build on the extensive efficiencies that have been achieved by local authorities in the past two years or so where savings of over €300 million have been achieved and to focus on key recommendations that will remove costs and yield earliest financial savings for the benefit of the sector and the economy. The group will report to me at regular intervals and its first report is to be provided within six months.

The group to review the staffing levels in Dublin City Council has recently completed its deliberations and its report and recommendations have recently been submitted to me. I am considering the report and will publish it shortly. Specific measures to modernise local government are also underway in parallel with the efficiency review group's recommendations. These include implementation of the "Transforming Public Services" programme and the public service agreement in local authorities in areas such as shared services, HR, ICT and procurement. Reports on progress and savings under the local government sectoral action plan of the PSA were made to the implementation body in May 2011.

I am satisfied that these measures represent a comprehensive and targeted approach to achieving further efficiencies in local government.

5:00 pm

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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I thank the Minister for his reply. The local government efficiency review identified €511 million worth of savings that could be made across the local authority sector, which is a very significant amount of money. The Minister has told us he intends introducing new revenue raising measures for local authorities, including the household utility charge, which he announced during our last questions session.

What efficiencies will the Minister introduce in the local authority sector prior to committing to the introduction of this charge? This new charge will be levied on all households and will be a new income stream for local authorities. However, we do not have a schedule of identified efficiencies or savings.

For example, will the Minister reduce the number of local authority managers from 34 to 24? Will he reduce the number of directors of services in the second tier of management? Will he amalgamate local authorities along the lines recommended by an bord snip nua?

The Minister said the implementation committee will come back to him on a regular basis but is there a timeline to implement the action plans? What recommendations does he intend to pursue within this timeline?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I know Deputy Niall Collins would be anxious that we would have greater efficiency in local government.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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Correct.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I am anxious to have a local government reform package to recommend to the House in the autumn. That will include some of the major recommendations in the various efficiency reports and in the McCarthy report to reduce payroll costs. I remind the Deputy that the number of local government staff has been reduced by 6,600 in the past two years. That is a very significant contribution to the overall reduction in public sector staff - in fact, it is 30%. Much work is being done to protect front line services and to enhance them if we possibly can and to look at the management side of the local government system to see how we can make efficiencies there.

There are a number of recommendations on how we can end motor tax gapping. I will bring forward proposals later this year which will probably require legislation to close the gap where people declare vehicles are off the road for a month. That gap will be closed in order to bring additional revenue into the local authority. Over-the-counter and full financial recovery of planning fees have been identified in the report and are under active consideration. I expect to have a package of measures to bring to the House in October.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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I believe Professor Richard Tol indicated at a conference at which the Minister spoke that he envisaged the household utility charge may be of the order of €700 per household per month. Will the Minister give his view on that? Are there any plans to roll out new tolls on existing roads?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I do not agree with Professor Tol's calculations or with the proposition or assumptions he made in his comments at that conference. I have no plans to roll out any new tolling schemes.