Written answers

Tuesday, 26 November 2013

Department of Environment, Community and Local Government

Local Government Reform

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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460. To ask the Minister for Environment, Community and Local Government the proposed cost savings of €440 million through the implementation of the Local Government Bill 2013; where the savings will be made and a county breakdown of same; and if he will make a statement on the matter. [50186/13]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Local Government Bill 2013 provides the legislative basis for a range of local government reform measures in the Action Programme for Effective Local Government, published in October 2012, which sets out Government policy decisions in relation to the reform of local government structures, functions, governance, funding and operational arrangements. The benefits of the reforms set out in the Action Programme will arise primarily in strengthening the local government system and improving effectiveness and value for money in the sector, particularly through more integrated administration, reduction of duplication, economies of scale, enhanced governance and oversight arrangements and a stronger role in promoting sustainable social, economic and community development.

Significant savings will, however, be achieved through the overall reform programme, including the reform of local government structures and implementation of the recommendations of the Local Government Efficiency Review (LGER), local authority workforce planning and agency rationalisation.

The County and City Managers' Association, in its input to the Report of the Local Government Efficiency Review Implementation Group (July 2013), identified 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.

Further savings are expected to be realised through other staffing and organisational rationalisation measures, including changes on foot of workforce planning and agency rationalisation, and a shared services approach across a number of programmes, particularly in relation to treasury management, transactional HR, shared payroll systems, procurement and ICT back office functions.

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