Billy Timmins (Wicklow, Fine Gael)
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Question 147: To ask the Minister for the Environment, Heritage and Local Government the steps he is taking to ensure that the taxpayer receives value for money from local authorities; and if he will make a statement on the matter. [16468/05]

Dick Roche (Wicklow, Fianna Fail)
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While local authorities have primary responsibility for delivering value for money in their activities, my Department is actively involved on a range of fronts to ensure that this is achieved. Key initiatives by my Department include: full implementation in 2004, in co-operation with local authorities, of new financial management systems based on accrual accounting principles and incorporating balance sheets is designed to deliver better management information and enhanced performance management capacity, and to facilitate improved value for money measurement. This work will be complemented by the development of a new costing system in local authorities. The introduction of five year multi-annual capital investment programmes provides a structured basis for the planning and delivery of all capital programmes in a way that ensures that best value for money is achieved.

In the housing area, to maximise the benefits of this multi-annual approach, local authorities have prepared five-year social and affordable housing action plans. This plan-led approach will focus on achieving maximum output under the programmes and ensure that this output is delivered in a coherent, integrated and sustainable manner. In the area of water services where three year rolling plans were introduced in 2000, in order to deliver infrastructure more speedily and to improve operation and maintenance standards, my Department has adopted design build and operate as the standard form of procurement for all new treatment facilities to be provided by local authorities. Public private partnerships are also being used in the areas of waste management and housing.

In the non-national roads programme, a multi-annual restoration improvement programme is in place which ensures that priority is given to the more critical schemes, a number of best practice documents have been issued to local authorities and training for non-national roads staff in local authorities was introduced in 2002 to improve efficiencies and develop appropriate skills. The first phase - demonstration and capacity building - of the local government e-procurement strategy which has been adopted by my Department is currently under way. The strategy will generate value for money in the local government sector through better management of the procurement process, including the sourcing of lower prices, lower transaction costs and improved control of inventories. The use of the needs and resources model in the allocation of general purpose grants from the local government fund encourages efficient use of resources by local authorities. The management of 42 local authority performance measurement indicators across a range of services will foster increased emphasis on value for money in service delivery.

Economy, efficiency and effectiveness in the local government system are key elements in the terms of reference of a major independent review on local government funding which is being undertaken. The appointed consultants are due to report shortly. All local authority expenditure is subject to audit by the local government audit service and projects co-financed by the EU are subject to EU value for money scrutiny and cost benefit analysis. The value for money unit of the local government audit service has carried out a number of value for money studies on different local government expenditure areas and further such studies are planned.