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

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.)

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

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

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%

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