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Impact of the efficiency agenda on Local Government

Impact of the efficiency agenda on Local Government. Paul McSweeney CEO Local Government Management Agency. Finance and funding challenges. Narrow funding base Reductions in central funding Legal requirement to ‘balance-the-books’ Less €, maintain services Driving the change agenda.

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Impact of the efficiency agenda on Local Government

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  1. Impact of the efficiency agenda on Local Government Paul McSweeney CEO Local Government Management Agency

  2. Finance and funding challenges • Narrow funding base • Reductions in central funding • Legal requirement to ‘balance-the-books’ • Less €, maintain services • Driving the change agenda

  3. Local Government Response • Staff reductions (5,800, 15.6% or c.€250m) 2008 – 2010 (ytd) • Loss of technical / outdoor / management expertise • Reduced capacity to take on additional responsibilities • Higher Standards driving Higher Costs • Compliance with Environmental Standards, Health & Safety, European Legislation • Recession driving additional demand for social services (housing, homelessness, libraries etc.)

  4. Public Service Agreement (‘Croke Park’) • Local authority agenda driven by need to achieve further savings • Procurement • Shared services • Maximising use of resources • Savings in work practices / rostering etc. • Single, common ICT infrastructure • Sectoral and Local Action Plan’s

  5. Local Government Efficiency Review Group (ERG) • Acknowledged progress in reducing staff numbers and in achieving efficiencies • Did not identify significant areas of waste • Strong emphasis on shared service agenda as way forward • Most notable recommendations dealt with proposed structural changes

  6. ERG staffing implications • 30% reduction in County / City Managers (34 to 24) • 20% reduction in DoS (240 to 190) • 15% reduction in Middle Management • Establishment of Ten Joint Administrative Authorities • 10% reduction in Corporate Services Staff • Review of Dublin / Cork City staffing levels • Roads Staff to reduce by 250 • Planning Staff to reduce by 10%

  7. Conclusions • Local Government committed to change • ERG implementation group being established will drive change further • Economic realities will force the pace of change

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