1. Local Government Efficiency Review Pat McLoughlin, IPSO Belfast 3 rd November 2010

2. Terms of Reference To review the cost base, expenditure of and numbers employed in local authorities with a view to reporting on: – Specific recommendations to reduce costs; – The effectiveness of particular programmes; – Optimal efficiency in the way programmes are delivered; and – Any other proposals to enhance value for money in the delivery of services at local level. 2

3. Structures 114 units of local Government Membership Ranges: 9 – 52 Population per elected member: 1,300 – 10,000 3

4. Sources of Local Authority Income 4

5. Dependence on Government Resources County Councils Average 48% Range 5 21% Fingal 75% Leitrim

6. Dependence on Government Resources City Councils 6

7. Dependence on Government Resources County Councils Cont’d 7

8. Recommendations in Context €300m reduction over past 2 years €511m recommended over short to medium term 8

9. Staffing Levels Pay / expenditure is 41% of expenditure 9

10. Impact of Moratorium Director  7% Clerical / Admin  4% Professional / Technical  3.7% Outdoor  13% 10

11. Movement in Personnel Impact of Moratorium 06/0812/0803/10 Directors228234207 Admin11,16811,32110,700 Professional / Technical 4,3164,3704,155 Total15,71215,92515,062 11

12. Joint Administration Units 12

13. Joint Administration Units 13

14. Impact of Joint Administrative Units 14

15. Span of Control – Management 15

16. Local Authority Staffing 16 Mayo 9.5 Kerry 8.7 Donegal 6.8 Cork 6.5 Galway 5.8 Staffing per 1,000 of Population Source: Survey of County and City Councils, 2010

17. 17 Local Authority Staffing Galway City 6.7 Limerick City 10 Waterford City 8.9 DLR Rathdown 6.1 South Dublin 5.6 Staffing per 1,000 of Population Source: Survey of County and City Councils, 2010

18. Local Authority Staffing Cont’d Remaining 18 counties Source: Survey of County and City Councils, 2010 Leitrim 10.4 per 1,000 Leitrim 10.4 per 1,000 Laois 6 per 1,000 Laois 6 per 1,000 Range 18

19. Staff Reductions / Management / Admin 10 County Managers 50 Directors 170 Corporate J.A.A.s 50 Corporate other 225 Middle / Senior Replacement 62 H.R. Payroll 15% Dublin / Cork Senior Managers 19

20. Staff Reductions (other) 180 Professional, Senior / Middle and Replacement 250 Roads 171 Planning 20

21. Shared Services Cont’d Very few national initiatives Need for a sector-wide approach Minister to direct if necessary Maximise the potential of scale 21

22. Shared Services Cont’d A uniform H.R. and payroll system Recruitment through P.A.S. Single, national ICT applications for all Extend model of Regional Design office 22

23. Shared Services Cont’d 23 Business Case Fire Services Homeless- ness Building Inspection Internal Audit Motor Tax eGovernment Other

24. Motor Tax €670m collected at offices €385m collected online Cost of collection €38m Off the road statements 396k p.a. Incentivise / disincentivise and take out costs 24

25. Motor Tax Cont’d Counter Cork 36% Donegal 80% Postal Donegal 4% Wexford 26% Online Donegal 15% Dublin 44% 25

26. Motor Tax 26

27. Housing Social Housing Rents 60% - 75% on state benefits Arrears €40m Collect at source Savings €25m 27

28. Planning Efficiency & Cost Recovery Full Cost recovery over 5 yearsAccelerate e-planningBusiness process re-engineering Tackle variation in development contributions 28

29. Water Water conservation: 17% - 50% unaccounted Enhance regional office rate – River basin approach Emphasis on water conservation Economies of scale (maximise) Benchmark performance 29

30. Procurement Reduce reliance on consultants Encourage local suppliers Adopt a single procurement system More dedicated procurement specialists Sector approach to improve performance 30

31. Internal Audit 99 staff as at 01/09 Most have no formal auditing qualifications 3 councils had none Don’t report to the Managers 31

32. Internal Audit Cont’d 32

33. Audit / V.F.M. V.F.M. Performance Improvement Information / Web New Regulation / Public Audit Plan Audit Committee 33 Proper SkillsShared L.A.Director of AuditOireachtas Committee

34. Cost Recovery Full economic cost recovery – water, waste Handling fee for manual motor tax Increased cost of driving licenses Curtail exemptions of commercial rates Extend model of late payment penalties 34

35. Local Government / Wider Public Service What we found? – Crowded pitch – Agencies not well integrated – Rate of consolidation slow – Difficulty in measuring effectiveness 35

36. Local Government / Wider Public Service (Cont’d) Recommendations – Intensify consolidation of development bodies – Align programmes and plans – Plans to be approved by local authority – New programmes under local authorities – Integrate county / city enterprise boards – Incentivise sharing of resources – Establish an innovation fund 36

37. Decision Making Decision V.F.M. Financial Programme Service Indicators Benchmarking Reports 37