Terence Flanagan (Dublin North East, Independent)
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484. To ask the Minister for Environment, Community and Local Government his views on the role out of one-stop-shops in local authorities and the savings that have been made over the past two years; and if he will make a statement on the matter. [49502/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I assume the Question is referring to the former one-stop-shop initiative, launched in 1998. I have no information with regard to the operational costs of these offices as this is a matter for each local authority concerned.

Current policy is set out in the Government’s Action Programme for Effective Local Government ; this addresses a range of local government reform measures, and in relation to service delivery, provides for an increased emphasis on identifying customers’ expectations, requirements and experiences. The proposals are designed to promote both increased operational efficiency and value for money through more integrated administrative and implementation arrangements and also to enhance the capacity of local authorities to achieve their broader role of promoting the sustainable development of their areas, the welfare of local communities and the quality of life of individual citizens by virtue of the effectiveness with which they perform their entire range of regulatory, representational and service delivery functions.

Internal organisational arrangements, including utilisation of any existing one-stop-shops , are a matter for individual local authorities to decide.

Terence Flanagan (Dublin North East, Independent)
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485. To ask the Minister for Environment, Community and Local Government his views on the roll-out of shared services in local authorities and the savings that have been made over the past two years; and if he will make a statement on the matter. [49505/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Local authorities have identified total savings of €839m since 2008. In the period since the preparation of the Local Government Efficiency Report, from 2010 to end 2012, the savings achieved are reported at €561m.

Shared services have been identified in the Local Government Efficiency Review and the Public Service Reform Plan as an important opportunity to make further savings in administrative costs, while streamlining and improving service delivery without impacting on front line services.

To drive the reform agenda, and in particular shared service initiatives, in the local government sector, a dedicated Programme Management Office (PMO) has been established which reports to a high-level Oversight Group.

Overall, 32 operational areas are being examined for potential as a shared service or other collaborative approach that may provide efficiencies. The PMO has adopted a comprehensive methodology for the development and evaluation of projects including, gathering and analysing baseline data, business case preparation and peer review of business cases.

Treasury Management, Payroll/Superannuation and Procurement have been prioritised in the shared services programme in the short to medium term. It is estimated that annual savings of the order of €5.6 million could be achieved (excluding procurement) from these projects; the figures for savings in individual areas are subject to on-going validation as individual projects progress.

It is necessary to invest in these projects in the initial phase and returns accrue over time. The business cases are based on evaluation over the medium term with returns generally beginning to accrue after the shared service is operational for a number of years.

Following competitive bidding processes this year, Laois County Council was selected to provide Shared Payroll and Superannuation services on behalf of all local authorities while Cork County Council are the lead local authority for Treasury Management.

In relation to procurement, the project is being led and co-ordinated by Kerry County Council as the lead authority in the Local Authority National Procurement Office. Since 2010, local authorities have reported procurement efficiency savings of €109 million, exceeding the sector’s 2010 target of €70m by 55%. The local authority sector is working with the Chief Procurement Officer in the Department of Public Expenditure and Reform and, in this regard, further savings of €58.5 million have been targeted for the sector by 2016.

Further savings can be anticipated in the medium term as other shared services projects progress towards implementation.